Signature Practice
Attorney Paymaster
& Escrow Services.
A neutral, licensed, and regulated custodian for the safe receipt, holding, and disbursement of funds — governed by New York attorney trust account rules and international AML standards.
The Role
The attorney paymaster is a neutral third party — not a counterparty.
A paymaster accepts a buyer's funds into an attorney trust account, safeguards them, and later disburses them to the seller and to every intermediary strictly in accordance with the transaction agreements. For brokers, mandates, and facilitators, it is the most effective way to ensure that contracted fees and commissions are actually paid.
As paymaster, Richard L. Derzaw receives the closing funds into a New York attorney trust account, verifies each party under AML procedures, and disburses funds strictly according to the executed Irrevocable Master Fee Protection Agreement. Sellers and intermediaries know the funds are present; the buyer receives delivery with reduced financial exposure.
For large currency movements — art, precious metals, private loans, or fungibles such as petroleum, natural gas, minerals, grains, and financial instruments — conventional banking channels are slow and procedurally rigid. An attorney trust account is purpose-built to receive and split transaction funds among multiple payees quickly, while holding them as a fiduciary.
A paymaster need not be an attorney. An attorney paymaster, however, operates a trust account supervised by the licensing authority, is bound by fiduciary duty, and risks disbarment if funds are mishandled — a layer of accountability no private escrow agent can offer.
Mandates Accepted
Where a paymaster earns its fee.
Commodities & Fungibles
Petroleum, natural gas, minerals, metals, grains, and other bulk commodity contracts with multi-party commission structures.
Precious Assets
Fine art, gold and precious metals, gemstones, and other high-value tangible assets requiring simultaneous delivery and payment.
Loans & Financial Instruments
Large private loans, notes, bank instruments, and structured financing where funds must move on a defined schedule.
M&A and Real Estate Closings
Purchase-price custody, holdbacks, and closing-day disbursements to sellers, lenders, and advisors.
Intermediary Commissions
Brokers, mandates, and facilitators protected under an IMFPA or Sub-Fee Protection Agreement (SFPA).
Payment Facilitation
Straightforward transfer of funds from a payor to the designated bank accounts of one or more payees.
If you are an intermediary, please initiate a request only after the sender, receiver, and intermediaries have reached at least a tentative underlying agreement. The firm can also administer substantial cryptocurrency mandates, on the express understanding that exchange accounts and wallets are not attorney trust accounts.
The Paymaster Process
Six steps, fully documented, end-to-end.
Engagement
The firm is retained under written engagement. All parties execute an Irrevocable Master Fee Protection Agreement (IMFPA) defining beneficiaries, allocations, and disbursement conditions.
Onboarding & AML
Every party is screened against OFAC, PEP, and sanctions lists. Corporate documents, beneficial ownership, and executed W-9 / W-8BEN forms are collected under attorney-client privilege.
Fund Receipt
The principal transfers funds by wire directly to the firm's New York attorney trust account. Receipt is confirmed in writing to all named beneficiaries within one banking hour.
Custody
Funds are held in the attorney trust account under New York State Bar supervision. Balances are never commingled with firm operating accounts and are traceable at all times.
Disbursement
Upon satisfaction of the IMFPA conditions, funds are disbursed by wire to each beneficiary in the agreed allocation, typically within 48–72 hours of receipt.
Closing Statement
Each mandate concludes with a signed disbursement statement issued to every party, itemizing amounts, wire references, and confirmation numbers.
Compliance & Due Diligence
Required documentation for every mandate.
The firm adheres to U.S. federal AML statutes, OFAC regulations, and New York State Bar trust account rules. The following is collected from every party before any funds are received:
Identity
- Government-issued photo identification for all natural persons
- Proof of current residential address
- PEP and sanctions questionnaire
Corporate
- Certificate of incorporation or formation
- Register of directors and beneficial owners
- Board resolution authorizing the transaction
Tax
- IRS Form W-9 for U.S. persons
- IRS Form W-8BEN or W-8BEN-E for foreign persons
- Tax residency certificate where applicable
Transaction
- Executed IMFPA and any underlying commercial agreements
- Wire instructions for each beneficiary, bank-stamped
- Source-of-funds documentation
Transaction information requested.
Beyond identity and tax documentation, the firm builds a complete picture of the transaction before any paymaster agreement is signed.
- ◆ Each party's role in the transaction — sender, receiver, or intermediary
- ◆ Volume of funds, and the countries and banks where the funds are held
- ◆ Whether the mandate is a one-time transfer or a series of periodical payments
- ◆ Identity of the sender of funds — natural person or corporate entity
- ◆ Copies of all transactional documents, including the payment agreement
- ◆ Fee or commission agreement between intermediaries, and who bears the cost
- ◆ Qualified Intermediary certificates with the IRS, where applicable
- ◆ Bank coordinates for every account receiving funds, fees, or commissions
- ◆ Whether a new entity must be formed, and in which jurisdiction
Transparent Fee Structure
Published rates, calculated on transaction volume.
No setup fee. Charges are based on the currency amount managed and the complexity of the mandate, quoted in basis points (bps) of the total volume held and disbursed.
Because each solution is tailored to the parties and the transaction, these rates are for general guidance and final fees are negotiated. Factors considered include the number of payees, the number of anticipated payments, the duration of the mandate, document drafting, and U.S. tax reporting or withholding requirements. Fees are increased for transactions involving cryptocurrency.
Rates reflect attorney paymaster fees only and exclude transaction-specific costs. The firm bears the incoming and outgoing wire charges of its own trust account; charges on any other sending or receiving account are borne by that account holder. Bps = basis points; 100 bps = 1.00%. Payments and disbursements are conducted by wire transfer only — cash, money orders, and bank checks are not accepted.
Scope of the Role
What a paymaster does — and does not — do.
The firm's principal duties are threefold: manage and disburse funds exactly as agreed, prevent money laundering, and ensure compliance with U.S. tax reporting and withholding requirements where relevant. Everything beyond that remains with the parties.
We do not participate
The firm takes no interest in the underlying transaction or project. It is not a counterparty, investor, or promoter.
We remain neutral
The firm never takes sides in disputes between buyers, sellers, and intermediaries, and offers no opinion on the economic merits or risk of a deal.
We do not vouch
No representation is made regarding the integrity, competence, or history of any party. Due diligence establishes compliance, not endorsement.
We depend on banks
Performance can depend on the willingness of correspondent banks to send and receive the funds, and therefore cannot be guaranteed.
Confidentiality Guarantee
Every mandate is protected by attorney-client privilege.
Transaction details, party identities, and disbursement records are handled with the highest degree of discretion. No information is shared with any third party without written authorization or lawful compulsion.
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