The facility-of-payment clause is a provision found in insurance policies or trusts that permits a designated individual to receive payment on behalf of the beneficiary. This provision ensures that if the beneficiary is unable to collect the payment themselves, an appointed person can do so on their behalf. Additionally, in the case of a trust, this clause enables anyone who owes money to the beneficiary to make the payment to the trustee instead.
A facility-of-payment clause is a provision in an insurance policy or trust that enables someone to receive payment on behalf of the beneficiary. This provision allows the beneficiary to designate a representative to collect the payment from the insurer or trustee. For instance, if a person with a life insurance policy passes away, the beneficiary may not be able to directly receive the payment. However, if the policy includes a facility-of-payment clause, the beneficiary can appoint someone to receive the payment on their behalf. In the case of a trust, a facility-of-payment clause permits any individual who owes money to an incapacitated beneficiary to make the payment to the custodial trustee. Consequently, the trustee can receive the payment on behalf of the beneficiary and utilise it for their care and well-being. In summary, a facility-of-payment clause is a valuable provision that allows someone to receive payment on behalf of the beneficiary in specific circumstances.
A Facility-of-Payment Clause is a provision in a contract that allows the debtor to choose the method or location of payment for a debt.
Including a Facility-of-Payment Clause provides flexibility to the debtor, allowing them to choose a convenient method or location for making payments.
Yes, a Facility-of-Payment Clause can be enforced in court as long as it is clearly stated in the contract and does not violate any laws or public policy.
The ability to change the method or location of payment depends on the specific terms outlined in the Facility-of-Payment Clause. Some clauses may allow changes at any time, while others may require prior notice or consent from the creditor.
If the debtor complies with the terms of the Facility-of-Payment Clause, the creditor generally cannot refuse to accept payment. However, if the debtor fails to meet the specified requirements, the creditor may have grounds to refuse payment.
A Facility-of-Payment Clause can be modified or removed from a contract if both parties agree to the changes. It is important to document any modifications in writing to avoid future disputes.
Yes, a Facility-of-Payment Clause can be included in various types of contracts, such as loan agreements, lease agreements, or purchase contracts, as long as it is relevant to the payment terms.
The limitations on payment methods or locations depend on what is specified in the Facility-of-Payment Clause. It is important to clearly define the acceptable options to avoid ambiguity or potential disputes.
No, a Facility-of-Payment Clause cannot be used to avoid legal obligations. It is essential to ensure that the chosen method or location of payment complies with all applicable laws and regulations.
A Facility-of-Payment Clause can be challenged in court if one party believes it is unfair, unconscionable, or violates any legal rights. The court will consider the specific circumstances and applicable laws to determine the validity of the clause.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/facility-of-payment-clause/
- Modern Language Association (MLA):Facility-Of-Payment Clause. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/facility-of-payment-clause/.
- Chicago Manual of Style (CMS):Facility-Of-Payment Clause. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/facility-of-payment-clause/ (accessed: May 09 2024).
- American Psychological Association (APA):Facility-Of-Payment Clause. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/facility-of-payment-clause/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts