Louisiana Lock Box Agreement as Cash Management System with Lenders

State:
Multi-State
Control #:
US-03367BG
Format:
Word; 
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Description

A lock box agreement is a service offered by banks to companies in which the company receives payments by mail to a post office box and the bank picks up the payments several times a day, deposits them into the company's account, and notifies the company of the deposit. This enables the company to put the money to work as soon as it's received, but the amounts must be large in order for the value obtained to exceed the cost of the service.


This lock box agreement is to be used by the collateral agent for a syndicate of banks to receive, control and apply to the Borrower's line of credit, payments made on the debtor's accounts receivable collateral. This agreement when executed, perfects the secured party's security interest in funds in the lock box account by control under Uniform Commercial Code § 9-104(a)(3) by making the agent bank the owner of and party in whose name the account is held. Because the account is controlled by ownership in the name of the secured party, the lock box bank cannot offset claims it has against the debtor against the account as provided in Uniform Commercial Code § 9-340(c). To avoid any doubt on this issue, the lock box bank expressly waives its rights of setoff. On the other hand, the agent bank agrees to indemnify the lock box bank for any unpaid fees or claims concerning the account, in the event the debtor fails to do so.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

The Louisiana Lock Box Agreement is a cash management system utilized by lenders in the state of Louisiana. It functions as a secure arrangement for managing funds between borrowers and lenders, ensuring efficient and timely payment processing while minimizing the risk of default. Under this agreement, borrowers are required to direct all payments, including checks and electronic transfers, to a designated lock box account held by a third-party bank. This bank acts as a neutral intermediary, receiving and processing all incoming funds on behalf of the lender. The lock box account is typically established in a Louisiana-based financial institution to facilitate seamless cash flow management within the state. Once funds are deposited into the lock box account, the bank swiftly processes the payments and promptly credits them to the lender's account. This arrangement allows for the seamless collection of payments while also enabling lenders to access funds quickly and efficiently. By utilizing the Louisiana Lock Box Agreement, lenders can effectively monitor and manage the cash flow associated with their loan portfolios. There are several types of Louisiana Lock Box Agreement as Cash Management System with Lenders that cater to specific needs and preferences. These include: 1. Standard Louisiana Lock Box Agreement: This is the most common type of lock box arrangement, enabling lenders to streamline payment processing and optimize cash flow management. 2. Electronic Lock Box Agreement: In this variation, payments are made using electronic means such as wire transfers or electronic fund transfers (Eats). This digital approach expedites payment processing and reduces the reliance on paper checks. 3. Remote Deposit Capture Lock Box Agreement: With this type of lock box agreement, borrowers can deposit funds directly into the designated lock box account using remote deposit capture technology. This method eliminates the need for physical checks and accelerates the payment processing timeline. 4. Virtual Lock Box Agreement: A virtual lock box agreement allows lenders to receive payments electronically through a secure online portal. This arrangement provides convenience and flexibility for borrowers, as they can initiate payments from any location. In summary, the Louisiana Lock Box Agreement serves as a robust cash management system for lenders operating in the state. By utilizing a designated lock box account held by a third-party bank, lenders can efficiently process payments and maintain control over their loan portfolios. With different variations available, borrowers and lenders can choose an agreement that best suits their specific requirements, whether it be a standard agreement, electronic lock box, remote deposit capture lock box, or virtual lock box.

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  • Preview Lock Box Agreement as Cash Management System with Lenders
  • Preview Lock Box Agreement as Cash Management System with Lenders
  • Preview Lock Box Agreement as Cash Management System with Lenders
  • Preview Lock Box Agreement as Cash Management System with Lenders
  • Preview Lock Box Agreement as Cash Management System with Lenders
  • Preview Lock Box Agreement as Cash Management System with Lenders

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FAQ

Lockbox banking is a service provided by banks to help businesses streamline their accounts receivable process. It involves directing customers to send their payments to a designated lockbox address where the bank collects and processes the payments on behalf of the business.

Lock boxes are designed not only to secure items from theft, they also help keep important items in order. Available in many different sizes and shapes, lock boxes are built for many different purposes.

estate lock box is a padlockshaped box that generally hangs around the doorknob of a house that is on the market. The device holds the keys to a house to allow communal access for all real estate agents, while continuing to keep them secure.

Definition for : Lockbox system Under a lockbox system, the creditor asks its debtors to send their payments directly to a post office box that is emptied regularly by the creditor's bank. The funds are immediately paid into the banking system, without first being processed by the creditor's accounting department.

How it works: Soft lockboxes primarily work one of two ways: (A) All rents from the property are deposited or paid directly into a Lender-controlled account (aka lockbox/restricted account) and are subsequently swept to the borrower; or (B) Rents are deposited in the restricted account and then are swept to a separate ...

Security interests in cash deposits can be perfected through the use of a ?lock box.? Under this arrangement, a borrower and a third party agree that payments on contracts entered into by a borrower are paid to a bank account which is in the possession and control of the lender.

There are three main types of lockboxes: Soft, Hard and Springing.

Lockbox banking is a service provided by banks to help businesses streamline their accounts receivable process. It involves directing customers to send their payments to a designated lockbox address where the bank collects and processes the payments on behalf of the business.

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How to fill out Lock Box Agreement As Cash Management System With Lenders? Use the most extensive legal library of forms. US Legal Forms is the best place ... Apr 10, 2013 — As soon as the words "cash management" are uttered in a negotiation, start the process of opening the lockbox by contacting the bank that will ...A cash management agreement is a contract between a bank and its customer used to manage the customer's funds. How it works: Soft lockboxes primarily work one of two ways: (A) All rents from the property are deposited into a Lender-controlled account (aka lockbox account) ... This template is a Lockbox Account Agreement used to create a security interest in cash supporting the obligations under a secured financing transaction. Borrower hereby grants to Lender a first priority security interest in the Cash Management ... the cash management system described in Schedule D. All payments ... Search and select the FNMA 3.2 (.fnm) file for the lock you are requesting and select. “Upload Loan”: Page 11. CORRESPONDENT Registration Steps 2019. 10. You ... Mar 1, 2022 — With a hard lockbox, the borrower directs all rents to be paid directly to the clearing account by delivering payment direction letters to the ... Feb 18, 2020 — Pursuant to the terms of the loan agreement, the borrower is required to deposit all income generated by the property (i.e., rents or other ... A mortgage broker pays for a lock-box without including any information identifying the mortgage broker on the lock-box. A mortgage lender provides lunch at ...

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Louisiana Lock Box Agreement as Cash Management System with Lenders