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Authorization Letter For Collection Of Payment for Malaysia

Authorization Letter For Collection Of Payment Template for Malaysia

A formal document governed by Malaysian law that grants specific authority to a designated individual or entity to collect payment on behalf of the authorizer. This document serves as a legal instrument under the Malaysian Contracts Act 1950 and related financial regulations, providing clear authorization for payment collection while protecting the interests of all parties involved. It includes essential details such as the identities of both the authorizer and authorized person, specific payment information, and any applicable conditions or limitations on the authorization.

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Authorization Letter For Collection Of Payment

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What is a Authorization Letter For Collection Of Payment?

The Authorization Letter For Collection Of Payment is a crucial document in Malaysian business and personal transactions, governed by the Malaysian Contracts Act 1950 and related financial legislation. This document is typically used when an individual or organization needs to delegate the authority to collect payment to another party, whether due to physical absence, convenience, or operational requirements. The letter must include specific details about all parties involved, the payment to be collected, and any conditions or limitations on the authorization. It serves as a protective measure for all parties by clearly documenting the permission granted and its scope, while ensuring compliance with Malaysian legal requirements, including those related to agency relationships and financial transactions. The document is particularly important in maintaining clear audit trails for financial transactions and establishing proper authorization chains in business operations.

What sections should be included in a Authorization Letter For Collection Of Payment?

1. Letter Date and Reference Number: Current date and any reference number for tracking purposes

2. Recipient Details: Full name and address of the organization/person to whom the authorization letter is addressed

3. Subject Line: Clear indication that this is an Authorization Letter for Collection of Payment

4. Authorizer's Details: Full name, identification number, and contact details of the person giving authorization

5. Authorized Person's Details: Full name, identification number, and contact details of the person being authorized to collect the payment

6. Payment Details: Specific details about the payment to be collected, including amount, payment reference, and source

7. Authorization Statement: Clear statement of authorization granting permission for payment collection

8. Signature Block: Space for authorizer's signature, name, and date

What sections are optional to include in a Authorization Letter For Collection Of Payment?

1. Time Limitation: Specify if the authorization is valid only for a specific time period

2. Special Instructions: Any specific conditions or instructions for collecting the payment

3. Witness Details: When additional verification is required, include space for witness information and signature

4. Company Details: If the authorizer is representing a company, include company registration number and position

5. Relationship Declaration: Statement explaining the relationship between the authorizer and authorized person if relevant

What schedules should be included in a Authorization Letter For Collection Of Payment?

1. Copy of Authorizer's ID: Photocopy of authorizer's identification document for verification purposes

2. Copy of Authorized Person's ID: Photocopy of authorized person's identification document for verification purposes

3. Original Payment Notice/Invoice: Copy of the payment document or invoice related to the collection

4. Company Authorization: If applicable, company board resolution or other corporate authorization documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Relevant legal definitions















Clauses














Industries

Contracts Act 1950: Governs the formation and enforcement of contracts in Malaysia, including authorization agreements. Ensures the authorization letter meets basic contract requirements of offer, acceptance, consideration, and legal intent.

Powers of Attorney Act 1949: Regulates the creation and execution of power of attorney documents, which is relevant as an authorization letter effectively creates an agency relationship for payment collection.

Stamp Act 1949: Requires certain documents, including authorization letters, to be properly stamped to be admissible in court. Determines the stamp duty payable on the authorization document.

Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001: Ensures the payment collection process complies with Malaysian anti-money laundering regulations, particularly for large sum collections.

Digital Signature Act 1997: Relevant if the authorization letter is to be executed electronically, governing the use and validity of digital signatures in Malaysia.

Financial Services Act 2013: Provides regulatory framework for financial matters including payment systems and instruments, ensuring compliance with Malaysian financial regulations.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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