The Importance Of Appointing A Process Agent for Export and Import
If you work in the import and export industry in todays globalized world, it’s common to have transaction parties which are located in different countries. Called ‘cross-border’ transactions, these are usually governed by English law, and thus subject to it.
It may be necessary to request a process agent when a transaction party is not physically present in England, and that given transaction is governed by English Law. It’s important that one understands what the role of a process agent is and what is involved in appointing one, in order to help avoiding expensive delays in closing a transaction of this sort.
Why Do You Need A Process Agent?
In order to correctly start an English court procedure, one needs to serve the court papers to the relevant party in the transaction. If they are not physically present or have an address in England, this process can take a long time and be very troublesome in general, as they will have to be served abroad wherever the relevant party is currently located. Thus, it becomes a market standard, and often required by transaction parties, that each party that does not have representation or presence in England appoints a process agent, and agree that they’ll be able to represent them in their court procedures.
When Do You Need A Process Agent?
A process agent can be essential for a cross-border transaction under English law. When any of the parties involved in a transaction are not represented or present in England, they will likely need a process agent. Cross-border transactions which tend to be subject to the English law are loans (syndicated or bilateral), swaps (ISDA), leasing agreements, credit facilities, along with other sorts of funding instruments. For example, if a borrower who is located in France takes a loan that is subject to the English law, normally the lender would require the French borrower to schedule a p process agent in England so that they can receive the court papers or their behalf, if court proceedings are necessary. A process agent may also act in a wider capacity for the company, such as acting as an agent to receive documents connected with arbitration proceedings as well as receiving a notice under contract such an independent party be needed.
What Should You Keep In Mind When Appointing An Agent?
When you’re selecting a process agent to receive your court papers, it’s a good idea to pick a company which quickly responds to your requests a sets up the initial appointment and that understands their role once they’re appointed. A professional agent is going to immediately provide notice of receipt of all legal proceedings, and will maintain an organized, comprehensive database of their appointment as agents along with current contact information.
How Can You Appoint A Process Agent?
In most cases, appointing a process agent is essential to closing a deal. Usually, to appoint such an agent, one has to perform the steps below:
- Communicate the main transaction information to the agent, such as closing date, the name of the transaction parties and contacts, and who should receive any process or service. The process agent will often have a standard form ready, allowing you to provide this information more effectively.
- If your transaction requires bespoke agent services, your process agent may require that you deliver to them all agreements in which they are to be named.
- You should coordinate with your agent to draft your process agent appointment letter — they may have a standard letter prepared already.
Make sure you engage a good process agent in advance of the closing date, so you can be sure their written appointment acceptance is received in a timely manner, preventing delays.