Forms of international agreements vary greatly from country to country, but a typical provision included in many international agreements is the appointment of an agent for service of process or commonly known as a Process Agent.
Thousands of cross-border transactions take place each year
among large corporations, lending institutions, credit unions, and
sovereign governments. Cross-border agreements serve as the basis
for international transactions involving parties from different
jurisdictions.
While almost any entity with an address in the jurisdiction
specified under the international agreement may legally act as a
Process Agent, a professional Process Agent is knowledgeable about
the various types of legal proceedings and understands the urgency
and steps that must be taken upon receipt of such proceedings.
The right Process Agent:
Prior to appointing a Process Agent, all involved parties need to agree upon the terms of the deal, especially since many of those terms are required in the appointment. Once the terms are defined, the Process Agent needs to be engaged quickly so that they can conclude the transaction before changes occur for either party that could derail the deal. Due to the nature of how deals work, speed is of the essence.
What to look for in a Process Agent
1. Is available during extended hours to meet the needs of
parties in multiple time zones.
2. Has the bandwidth and experience to support the speedy execution
of complex agreements.
3. Possesses local compliance expertise.
4. Can be the trusted agent to receive service of process and other
legal documents, while meeting the stipulations of international
agreements.
5. Offers extended payment terms for appointment letters rather
than requiring FIA.
6. Demonstrates discretion, keeping the content and terms of the
agreement confidential.
7. Provides prompt notice of receipt of any legal proceeding in
accordance with the terms of the international agreements and
maintains an accurate database of its Process Agent appointments
and current contact information.
Appointing a professional Process Agent affords all parties to the
transaction more confidence that there won't be missed or
mishandled legal proceedings resulting in a costly default
judgment.
Industries that are most likely to require Process Agent services
include industrial manufacturers, transportation/aviation,
investment & commercial banking, communications, energy, and
pharmaceuticals.
Realizing value
A responsive Process Agent can be a valued business partner. The
structured finance partner at a UK-based consulting firm sums up
the benefit of engaging an agile Process Agent service team this
way: "The Process Agent's expanded service hours and
proven infrastructure eliminate the time constraints and associated
pressures from our commercial relationships."
A partner at a large firm in the People's Republic of China
echoes the importance of getting answers when they're
needed—not hours or days later--noting that "the
difference is a service provider that responds immediately to every
Process Agent inquiry we launch, no matter what time zone."
And a senior paralegal supervisor from Brazil agrees: "The
availability of a dedicated process agent eliminates bandwidth
concerns because someone is always there to help."
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.