The Authorization Letter for Financial Assistance is a crucial document commonly used in India when an individual or entity needs to delegate financial authority to another party. This document becomes essential in various situations, such as when someone is traveling abroad, is physically incapacitated, or requires assistance in managing their financial affairs. The letter, compliant with Indian banking regulations and contract law, typically specifies the scope of authority, transaction limits, and duration of the authorization. It provides legal protection for all parties involved and is widely accepted by financial institutions across India. The document must include clear identification of all parties, specific powers granted, and any limitations on the authority, making it a comprehensive tool for delegating financial responsibilities while maintaining control and security.
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1. Date and Place: Current date and place of execution of the letter
2. Authorizer Details: Full name, address, and identification details of the person granting the authorization
3. Authorized Person Details: Full name, address, and identification details of the person being authorized
4. Purpose Statement: Clear statement of the purpose for which the financial assistance authorization is being granted
5. Scope of Authority: Specific details of what financial actions the authorized person can take
6. Duration of Authority: Time period for which the authorization is valid
7. Declaration: Statement confirming the voluntary nature of the authorization and understanding of its implications
8. Signature Block: Space for signatures of authorizer, authorized person, and witnesses
1. Transaction Limits: Specific monetary limits on transactions that can be conducted by the authorized person
2. Multiple Authorized Persons: Details of additional authorized persons if more than one person is being authorized
3. Revocation Clause: Specific conditions under which the authorization can be revoked
4. Indemnification: Clause protecting the authorizer from unauthorized actions of the authorized person
5. Emergency Contact Details: Alternative contact information for urgent situations
1. Schedule A - Account Details: List of specific bank accounts or financial instruments covered under the authorization
2. Schedule B - Authorized Activities: Detailed list of specific financial activities and transactions that are authorized
3. Appendix 1 - Identity Documents: Copies of identity documents of both authorizer and authorized person
4. Appendix 2 - Specimen Signatures: Specimen signatures of both parties for verification purposes
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