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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."
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
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
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
ASIC
Applicable Laws
Approved Loan
Associated Entity
Authorised Representative
Base Commission
Bonus Commission
Business Day
Clawback
Commencement Date
Commission
Commission Period
Commission Rate
Confidential Information
Credit Guide
Credit Legislation
Credit License
Customer
Disbursement Date
Dispute
Eligible Loan
Event of Default
Financial Year
Force Majeure Event
GST
Intellectual Property Rights
Interest Rate
Loan
Loan Amount
Loan Application
Loan Documentation
Loan Product
Loan Term
Material Adverse Effect
NCCP Act
Performance Targets
Personal Information
Privacy Laws
Processing Fee
Quarter
Referral
Regulatory Authority
Related Body Corporate
Representatives
Services
Settlement
Settlement Date
Term
Territory
Trail Commission
Upfront Commission
Volume Bonus
Commission
Payment Terms
Clawback
Regulatory Compliance
Licensing Requirements
Service Levels
Confidentiality
Data Protection
Privacy
Record Keeping
Audit Rights
Representations and Warranties
Indemnification
Insurance
Intellectual Property
Non-Solicitation
Non-Competition
Term and Termination
Force Majeure
Assignment
Dispute Resolution
Governing Law
Notices
Amendment
Entire Agreement
Severability
Waiver
Third Party Rights
Counterparts
GST
Anti-Money Laundering
Performance Standards
Reporting Requirements
Default and Remedies
Financial Services
Banking
Mortgage Industry
Consumer Lending
Commercial Lending
Property Finance
Asset Finance
Equipment Finance
Financial Technology
Legal
Compliance
Finance
Risk Management
Broker Support
Operations
Settlement
Business Development
Partner Relations
Commission Processing
Credit Assessment
Product Management
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
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