Can this agreement be signed electronically?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, electronic signatures are legally enforceable when intent, consent, attribution, and record retention are satisfied; check for specific statutory exceptions that may apply.

When is notarization required?

Notarization is document-specific. Many jurisdictions require notarized acknowledgements for certain property or trust filings; confirm local notary rules and whether remote online notarization (RON) is permitted in your state.

Do witness signatures matter?

Some states require witnesses for particular instruments. Include witness requirements in the agreement where state law or bank policy imposes a witness count to ensure validity.

How do I correct a signed agreement?

Minor clerical errors may be addressed with a signed amendment or corrective addendum signed by all parties; material changes require a new fully executed agreement to avoid enforceability disputes.

How long must records be kept?

Retain records per federal and industry rules: IRS minimum three years (IRC §6501(a)); HIPAA six years (45 CFR §164.530(j)); longer retention may apply for securities or state rules.

What if a signer disputes an electronic signature?

Preserve audit trails, authentication logs, and any consent disclosures. Evidence of identity verification, timestamps, and a certificate of completion supports enforceability under ESIGN and UETA.

Electronic Signature
Templates
Legal
Legal Client Funds Advisors Agreement

Legal Client Funds Advisors Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Legal Client Funds Advisors Agreement

This Legal Client Funds Advisors Agreement (the "Agreement") is made and entered into as of Effective Date: by and between Client Name: with principal address: , and Advisor Name: with principal address: . Client and Advisor may be referred to individually as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Client holds certain funds entrusted for the benefit of Client's clients or third parties ("Client Funds") and requires professional advisory services for investment, safekeeping, and administration of such Client Funds; and

WHEREAS, Advisor represents that it has the experience, personnel, and capacity to provide investment advisory and fund administration services with respect to Client Funds and is willing to render such services on the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties desire to set forth their respective duties, authorizations, limitations, fees, and procedures with respect to the management and safeguarding of Client Funds.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

1. DEFINITIONS

1.1 "Client Funds" means monies held by Client in trust, escrow, or other fiduciary capacity for third parties that are the subject of this Agreement, including any interest or earnings thereon.

1.2 "Custodian" means any bank, trust company, or other financial institution designated by the Parties to hold Client Funds pursuant to this Agreement. Custodian:

2. APPOINTMENT; SCOPE OF SERVICES

2.1 Appointment. Client hereby appoints Advisor to provide advisory and administrative services with respect to the Client Funds described in this Agreement, and Advisor accepts such appointment subject to the terms and conditions herein.

2.2 Scope. Advisor shall provide investment advisory, investment selection, cash management, trade execution oversight (through the Custodian), allocation of interest or earnings, periodic reporting, and other administrative services reasonably necessary for the management of Client Funds (collectively, the "Services"). Investment objectives:

3. STANDARD OF CARE; AUTHORITY

3.1 Fiduciary Duty. Advisor shall act as a fiduciary with respect to the Services and shall exercise the care, skill, prudence, and diligence that a prudent fiduciary would exercise under similar circumstances taking into account the investment objectives and needs of Client and the nature of Client Funds.

3.2 Limited Authority. Advisor's authority to act on behalf of Client shall be limited to the express written delegations set forth in this Agreement and any written schedules or instructions executed by both Parties. Advisor shall not disburse Client Funds for Client obligations except as authorized in writing. Authorized uses of Client Funds:

4. INVESTMENT GUIDELINES AND RESTRICTIONS

4.1 Investment Policy. Client and Advisor shall adopt and attach an Investment Policy Statement describing permitted instruments, risk tolerance, liquidity requirements, and prohibited investments. Risk tolerance:

4.2 Prohibited Investments. Advisor shall not invest Client Funds in any security or asset class expressly prohibited in the Investment Policy Statement or by applicable law.

5. CUSTODY, SEGREGATION AND HANDLING OF CLIENT FUNDS

5.1 Segregation. Client Funds shall be maintained in accounts segregated from Advisor's assets and from Advisor's other clients' assets, in accounts titled to reflect fiduciary status as required by applicable law and applicable professional trust requirements.

5.2 Interest and Earnings. Interest, dividends, and other earnings on Client Funds shall be allocated and disbursed in accordance with the Investment Policy Statement and applicable law. Allocation of interest and earnings:

6. RECORDS, REPORTING AND AUDIT

6.1 Records. Advisor shall maintain complete and accurate records of all transactions affecting Client Funds and provide such records to Client upon reasonable request.

6.2 Reports. Advisor shall deliver to Client periodic statements describing holdings, transactions, fees charged, and cash balances at the following frequency: . Reporting format and additional instructions:

6.3 Audit Rights. Client or Client's designated auditor shall have the right to audit Advisor's records relating to Client Funds upon reasonable prior notice, during normal business hours, and at Client's expense unless gross negligence or willful misconduct is alleged.

7. FEES AND EXPENSES

7.1 Fees. Client shall pay Advisor fees for the Services as follows: fee type: ; fee amount or rate: .

7.2 Payment. Fees and reimbursable expenses are payable as specified in the invoice or statement and may be deducted from Client Funds only where Client has provided express written authorization to use such funds for fee payment.

8. LIABILITY; INDEMNIFICATION

8.1 Limitation of Liability. Except for losses resulting from Advisor's gross negligence, willful misconduct, or breach of fiduciary duty, Advisor shall not be liable for any loss, diminution, or lost opportunity relating to Client Funds resulting from market fluctuations, acts of third parties, or following Client's written instructions.

8.2 Indemnification. Client shall indemnify and hold harmless Advisor and its officers, employees, and agents from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or relating to the Services, except to the extent such claims arise from Advisor's gross negligence or willful misconduct.

9. CONFIDENTIALITY

9.1 Confidential Information. Each Party shall keep confidential all nonpublic information relating to the other Party and Client Funds received in connection with this Agreement, except as required by applicable law or as necessary to perform the Services, in which case the receiving Party shall notify the disclosing Party when permitted.

10. TERM; TERMINATION

10.1 Term. This Agreement shall commence on the Effective Date and shall continue until terminated pursuant to this Section. Initial term (months):

10.2 Termination. Either Party may terminate this Agreement upon written notice to the other Party delivered at least days prior to the effective date of termination. Upon termination, Advisor shall cooperate to transfer Client Funds to Client or a successor as directed and shall deliver final accounting and records within a reasonable time.

11. NOTICES

All notices, consents, requests, and other communications under this Agreement shall be in writing and delivered to the addresses below (or to such other address as the Party may designate by notice). Notices to Client:

Client Notice Address Advisor Notice Address

12. AMENDMENTS; WAIVER; COUNTERPARTS

12.1 Amendments. No amendment, modification, or supplement to this Agreement shall be effective unless in writing and signed by both Parties.

12.2 Waiver. Failure by either Party to enforce any provision of this Agreement shall not constitute a waiver of future enforcement of that or any other provision.

12.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

13. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction specified here: without regard to principles of conflicts of law.

13.2 Entire Agreement. This Agreement, together with any schedules and exhibits executed by the Parties, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior oral or written agreements.

13.3 Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect.

14. MISCELLANEOUS

14.1 Relationship of Parties. The Parties are independent contractors. Nothing in this Agreement shall be construed to create a partnership, joint venture, or employer-employee relationship between the Parties.

14.2 Assignment. Neither Party may assign this Agreement or any rights hereunder without the prior written consent of the other Party, except that Advisor may assign to an affiliate in connection with a merger or sale provided that successor assumes Advisor's obligations in writing.

Client:

By:

Date:

Advisor:

By:

Date:

What the Legal Client Funds Advisors Agreement Is

A Legal Client Funds Advisors Agreement is a written contract that sets out how an advisor will receive, hold, manage, and disburse client funds. It defines the parties, scope of authority, fiduciary responsibilities, permitted uses of funds, reporting and reconciliation procedures, and dispute-resolution mechanics. These agreements clarify custody arrangements, escrow or trust account requirements, fee structures, and conditions for return or transfer of client monies. They are commonly used when advisors, trustees, agents, or law firms manage client funds in escrow, settlement, investment advisory, or transactional contexts in the United States.

Why a Clear Agreement Matters for Client Funds

A precise agreement reduces legal and operational risk by documenting custody rules, reconciliation schedules, and signatory authority. It protects clients and advisors by establishing controls, audit rights, and remedies for misallocation or unauthorized disbursement, and it supports regulatory compliance where fiduciary, escrow, or trust duties apply.

Who Uses the Legal Client Funds Advisors Agreement

Typical users include professionals and organizations that handle third-party funds and need documented custody and disbursement procedures.

Registered investment advisors and broker-dealers who manage client cash, escrow, or investment proceeds for clients.
Law firms and settlement administrators handling client trust or escrow accounts for closings and judgments.
Property managers, real estate brokers, and escrow companies collecting deposits and managing closing distributions.

Selecting the appropriate signatories and specifying account controls reduces disputes and supports later audits or regulatory reviews.

Step-by-Step: Completing the Agreement

Follow these four essential steps to prepare a legally sound and operationally clear client funds agreement.

01

Assemble parties: Confirm legal names and roles for all parties before drafting.
02

Define funds: Specify which monies are covered and permitted uses.
03

Set controls: Encode authorization thresholds, dual-signature rules, and reconciliation cadence.
04

Sign and retain: Execute signatures, date the document, and preserve an auditable record.

Configuring the Digital Signing Workflow

Set up electronic routing and authentication to match the document's control requirements and regulatory needs.

Field	Configuration
Signer Order	Sequential or parallel routing depending on approval flow
Authentication	Email plus SMS code or KBA for higher assurance
Signing Fields	Signature, initial, date, and conditional approval fields
Audit Trail	Enable full event logging and timestamp capture

How Electronic Execution and Delivery Typically Works

A predictable digital workflow ensures each signer receives the right access and verifies identity before signing.

Upload: Upload the agreement PDF or DOCX to the signing platform.
Prepare: Place signature, initial, date, and conditional fields where required.
Authenticate: Invite signers and apply appropriate authentication methods.
Complete: Signer signs; platform issues a certificate of completion and stores the record.

Core Clauses and Sections to Include

A robust agreement balances operational detail with legal protections to control funds, assign responsibilities, and limit exposure.

Scope of Funds

Define which deposits, escrow amounts, settlement proceeds, or retainer funds are covered and any excluded items.

Custody and Accounts

Specify the type of account (trust, escrow), bank details, permitted transfers, and whether funds are segregated.

Authority and Limits

Describe who can authorize disbursements, dollar thresholds, and dual-approval requirements.

Reporting and Reconciliation

Set format, frequency, supporting attachments, and correction procedures for reconciliations and statements.

Indemnity and Liability

Allocate responsibility for losses, define indemnification obligations, and limit damages where permissible.

Dispute Resolution

Include governing law, venue, arbitration or mediation clauses, and steps for disputed disbursements.

Essential Information to Collect in the Agreement

Client Identity: Full legal name

Advisor Identity: Entity name and registration

Bank Details: Routing and account numbers

Authorized Signers: Names and titles

Control Rules: Dual-signature thresholds

Reporting Terms: Frequency and delivery method

Penalties and Risks of an Incorrect Agreement

Fiduciary Breach: Civil damages and disgorgement risk

Regulatory Sanctions: State or federal fines and disciplinary actions

Criminal Liability: Fraud or embezzlement exposure in severe cases

Bank Rejection: Account freezes or declined transactions

Contract Voidance: Enforceability issues from improper execution

Tax Consequences: Reporting gaps and IRS penalties

Common Preparation and Execution Errors to Avoid

Using informal names or nicknames instead of legal entity names causes bank and tax mismatches and delays.
Leaving signature authority undefined or relying on initials rather than full signatures creates ambiguity during audits.
Failing to specify dual-signature thresholds or delegated authority leads to unauthorized disbursements and internal disputes.
Neglecting to retain an auditable record of signings, timestamps, and identity verification undermines electronic execution validity.

Key Timing and Delivery Expectations

Set clear timelines for funding, reporting, dispute notice, and reconciliation to reduce operational friction and legal exposure.

Funding Effective Date:

Funds must be deposited by the effective date specified in the agreement.

Periodic Reporting:

Monthly or quarterly reconciliations typically due within 15 business days of period end.

Dispute Notice Window:

Require written notice of disputes within 30 days of statement delivery.

Correction Period:

Allow 10 business days for investigating and correcting allocation errors.

Record Retention Start:

Retention begins on the effective date or date of last action, as specified.

Comparing eSignature Options for Executing Client Funds Agreements

Pricing and capabilities vary by vendor; signNow is listed first to show comparative plan features and common attributes across providers.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions and Practical Answers

Answers to common execution, enforceability, and compliance questions about client funds agreements and electronic processes.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, electronic signatures are legally enforceable when intent, consent, attribution, and record retention are satisfied; check for specific statutory exceptions that may apply.
When is notarization required?
Notarization is document-specific. Many jurisdictions require notarized acknowledgements for certain property or trust filings; confirm local notary rules and whether remote online notarization (RON) is permitted in your state.
Do witness signatures matter?
Some states require witnesses for particular instruments. Include witness requirements in the agreement where state law or bank policy imposes a witness count to ensure validity.
How do I correct a signed agreement?
Minor clerical errors may be addressed with a signed amendment or corrective addendum signed by all parties; material changes require a new fully executed agreement to avoid enforceability disputes.
How long must records be kept?
Retain records per federal and industry rules: IRS minimum three years (IRC §6501(a)); HIPAA six years (45 CFR §164.530(j)); longer retention may apply for securities or state rules.
What if a signer disputes an electronic signature?
Preserve audit trails, authentication logs, and any consent disclosures. Evidence of identity verification, timestamps, and a certificate of completion supports enforceability under ESIGN and UETA.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now