Financing agreements frequently include a provision that requires an agent to be appointed for service of process, more commonly known as a Process Agent. But what does it mean? Ocorian has a great deal of experience with Process Agent services so we've answered the key questions to consider when the need presents itself.
What is a Process Agent?
The role of the Process Agent is to act as a local representative to accept service of legal proceedings, including notices and other documentation, in the jurisdiction governing the transaction or specific transaction documentation on behalf of an overseas client in situations where they do not have a registered office within the relevant jurisdiction.
Who needs a Process Agent?
Any institutions or companies involved in cross border transactions, who do not have a physical presence or registered office in the jurisdiction of the governing law of the relevant transaction document. A Process Agent will enable the service of legal process to be effective within that jurisdiction which is crucial if a dispute arises between the parties.
What does a Process Agent do?
A Process Agent acts as a locally based representative who can receive court papers as per the instructions of the appointing parties. They will then make sure the instructing party has the originals and / or copies of all documentation received by them in connection with these proceedings in a timely manner.
Multiple parties may need to appoint a Process Agent for a single financing transaction. There are also no limitations regarding appointing the same Process Agent by multiple parties in more than one agreement.
What type of transactions require a Process Agent?
Cross-border financial transactions involving commercial banks, sovereign states, multilateral lending agencies, export credit agencies and corporate entities usually require a Process Agent in varying capacities. They are present in these types of global financing transactions:
- Commercial real estate
- M&A transactions
- Credit financing
- Aviation purchase, leasing and/or financing
- Cross-border pre-export financing
- Derivatives (ISDA master agreements)
- Debt / equity capital market offerings
- Rule 144A / regulations offerings
- Private placements
- Commercial bank, private debt fund & syndicate lending deals
What are the benefits of employing a Process Agent?
From responsiveness and flexibility to trust and confidentiality, a professional Process Agent is fundamental for transaction parties. They act as your representative and are legally required to be in place to commence the proceedings with an obligation to notify recipients of any other documents received relating to their case. Process Agents understand the urgency and steps that must be taken upon receiving these important documents.
Engaging the right Process Agent gives peace of mind that;
(i) Legal proceedings can be effectively started against the relevant party, if required, by those instigating them within the jurisdiction
(ii) All documents and information relating to the legal proceedings and process will be promptly provided to the recipient, giving an opportunity for parties to participate fully.
Why choose Ocorian for Process Agent services?
We are an established global company with a presence across multiple jurisdictions. Our dedicated teams have years of experience acting as a Process Agent amongst other support roles. We work with strict processes and control frameworks that can help manage complex transactions across industries and time zones.
We are committed to being proactive and swift with requests and our efficient, straightforward on-boarding once appointed leaves more time for transactions to complete without delays.
You may also benefit from Ocorian's experience in other fields such as agency, trust, and corporate services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.