Banking services master agreement
- Purpose is to enumerate all facets of a banking relationship in a single document.
- Depending on the nature and scope of requested banking services, the banking services agreement will contain any number of provisions.
- Elements of master agreement
- Purposes: e.g., safeguarding and custodianship of assets, concentration or receipts, pooling of disbursements, provisioning of external liquidity, merchant services, lockbox services, corporate cards, funds transfer services, banking data aggregation and reporting, ectetera.
- Collateralizaion of deposits.
- Authorized individuals or positons empowered to do business with the financial institution.
- Specfication of reports to be received.
- Specification of connectivity services to be provisioned and formats.
- Fees: e.g., how fees are to be handled (i.e., compensating balances, pricing schedules,etcetera).
- Liability of parties; e.g., inherent risks, remedies, standards or care, liability regarding delays, loss of interest, inaccuracies trade/settlement failures, etcetera.
- Electronic funds transfer agreements: e.g., ACH, Fedwire, SWIFT
- Lockbox agreements
- Checking account agreements
- Sweep account agreements
- Merchant services agreements
- Corporate card agreements
- Trust agreements
- Capital acquisition/constuction accounts
- Lease payment accounts
- Credit facility accounts
- Investment accounts
- Escrow accounts
Examples of specific banking services covered under these agreements
- Electronic
- Balance and transaction-reporting service
- Stop payments
- Payment capabilities
- Transmitted analysis and statements
- Digitized storage of paid checks and statements
- Stale date check management
- Access to safekeeping/custodial information
- Access to investment performance reporting
- Accounts
- Controlled disbursement
- Zero-balance
- Interest-bearing
- Investment sweep account
- Security features
- Positive pay services
- Reconciliation services
- ACH blocking/filtering capabilities
- Check to ACH conversion
- NSF/ACH conversion for representment of NSF check
- Collateral requirements
- Cash management services
- Lock-box services
- Credit card receipt merchant services
- Safekeeping custody arrangements
- Procurement cards
- Payroll/value cards
- Web links for Internet payment for services
