Loan Commission Agreement Template for Australia

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Key Requirements PROMPT example:

Loan Commission Agreement

"I need a Loan Commission Agreement for my mortgage broking business based in Victoria, Australia, establishing a new partnership with a major bank where we'll receive both upfront and trailing commissions for residential mortgages, with the agreement to commence from March 1, 2025."

Document background
The Loan Commission Agreement is a critical document used in the Australian financial services sector to formalize the commercial arrangement between lenders and loan intermediaries. It is particularly relevant in today's highly regulated financial services environment, where clear documentation of commission structures and compliance obligations is essential. The agreement typically covers commission rates, calculation methodologies, clawback provisions, and compliance with Australian regulatory requirements, including those under the National Consumer Credit Protection Act 2009 (Cth) and ASIC regulations. This document is essential for maintaining transparency in broker remuneration and ensuring compliance with responsible lending obligations and broker duty requirements under Australian law.
Suggested Sections

1. Parties: Identification of the parties including the commission payer (typically the lender) and the commission recipient (typically the broker/intermediary)

2. Background: Context of the agreement, business relationship, and any relevant licensing or authorization details

3. Definitions: Key terms used throughout the agreement, including types of loans, commission types, and regulatory terminology

4. Appointment and Scope: Terms of appointment, exclusivity (if any), and detailed scope of services to be provided

5. Regulatory Compliance: Obligations regarding licensing, authorizations, and compliance with relevant laws

6. Commission Structure: Detailed breakdown of commission rates, calculation methods, and qualifying criteria

7. Payment Terms: Timing of payments, payment methods, and handling of commission adjustments or clawbacks

8. Obligations of Parties: Specific duties and responsibilities of each party

9. Representations and Warranties: Statements of fact and promises made by each party

10. Record Keeping: Requirements for maintaining records of transactions and commission calculations

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Duration of agreement and circumstances for termination

13. Dispute Resolution: Process for handling disagreements and disputes

14. General Provisions: Standard legal clauses including governing law, notices, and assignment

Optional Sections

1. Training and Support: Details of training and support provided by the lender, used when the agreement includes ongoing support services

2. Marketing and Branding: Guidelines for using brands and marketing materials, included when the intermediary will be promoting the lender's products

3. Volume Targets: Specific performance targets and associated bonuses, used in performance-based agreements

4. Technology Integration: Requirements for using specific software or platforms, included when technical integration is required

5. Sub-contracting: Terms for engaging sub-contractors or assignees, used when sub-contracting is permitted

6. Insurance Requirements: Specific insurance coverage requirements, included for high-value or high-risk arrangements

7. Data Protection: Additional data handling and privacy requirements, used when extensive personal data processing is involved

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different loan products and scenarios

2. Service Level Requirements: Specific performance metrics and service standards

3. Compliance Checklist: List of regulatory requirements and compliance obligations

4. Required Documentation: Lists of documents required for loan applications and commission claims

5. Reporting Templates: Standard formats for regular reporting and commission calculations

6. Contact Details: Key contacts and escalation paths for both parties

7. Territory Schedule: Definition of geographic or customer segments covered by the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Mortgage Industry

Consumer Lending

Commercial Lending

Property Finance

Asset Finance

Equipment Finance

Financial Technology

Relevant Teams

Legal

Compliance

Finance

Risk Management

Broker Support

Operations

Settlement

Business Development

Partner Relations

Commission Processing

Credit Assessment

Product Management

Relevant Roles

Mortgage Broker

Finance Broker

Commercial Lending Manager

Credit Manager

Compliance Officer

Legal Counsel

Business Development Manager

Partnership Manager

Commission Manager

Chief Financial Officer

Risk Manager

Operations Manager

Channel Manager

Broker Support Manager

Settlement Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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