Paymaster

A paymaster is someone appointed by a group of buyers, sellers, investors or lenders to receive, hold, and dispense funds, commissions, fees, salaries (renumeration) or other trade, loan, or sales proceeds within the private sector or public sector.[1] Specific titles within the British government are Paymaster of the Forces, Paymaster-General[2] and Paymaster of Pensions.

Purpose

The primary purpose of a paymaster is to receive fees in escrow by buyers in a large transaction, and disburse to the sellers and brokers on the transaction.

A paymaster is usually, but not required to be, a lawyer (also known as a 'lawyer paymaster'). When dealing with commission payments on contracts dealing with large amounts of money (such as Oil, Gas, Steel, Iron, Gold, MTN's, VG's, T-Strips, and other instruments), most banks in the United States are very wary of handling such large amounts of money. In addition, most buyers and sellers of such transactions want to place the money with a neutral third party for disbursement. In most cases, the buyer and the seller involved in the transaction require a paymaster be named to handle all incoming and outgoing funds.

A paymaster is a neutral third party and has no knowledge of any particulars of the transaction. They handle the incoming commissions, and then disburses the funds accordingly. In return for their services the paymaster charges a small fee, which is paid directly to them out of the commission proceeds prior to disbursement.

Requirements for position

In US, there is no licensing requirement to be a paymaster. However, a paymaster often is a licensed lawyer, due to the security and safety issue that lawyers in the U.S. are required to hold any funds that do not belong directly to them in an "Attorney's Trust Account" (also known as an IOLTA account), which is monitored by the state bar, in the state in which the lawyer practices.

gollark: Urbit contains C code for purposes, I assume.
gollark: I do not, however, have any idea why, since I only changed the multicast address.
gollark: Remember how a while ago I was working on a multicast-based chat thing which mysteriously failed and lead me to complain about POSIX or whatever's socket API? I found a random stackoverflow question which prompted me to change one line and it somewhat works now.
gollark: This is factually incorrect. I have syntax highlighting.
gollark: Oh, potatOS has had that for ages.

References
  1. "paymaster". Merriam-Webster. Retrieved September 14, 2012.
  2. "the Paymaster General". Cambridge Dictionaries Online. Retrieved September 12, 2012.
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