Mechanics
Lockbox
status: draft
A controlled collection account or payment direction arrangement that routes borrower or obligor payments away from the originator operating account.
What to watch
The practical question is control: who can redirect payments, how quickly funds sweep, and whether the structure prevents commingling if the originator fails.
Referenced in 28 topics
Account control agreements documentation Accounts and cash management mechanics Auto loans and leases asset-classes BNPL receivables asset-classes Cash operations and waterfall execution operations-lifecycle CMBS (conduit, SASB, large loan) asset-classes Healthcare receivables asset-classes Legal opinions and third-party reports documentation Pool formation and onboarding operations-lifecycle Premium finance asset-classes Protecting your position in distress playbooks Selecting a servicer counterparties Servicer responsibilities counterparties Servicer selection and oversight playbooks Servicer termination and transition counterparties Servicing agreement documentation Servicing operations operations-lifecycle Single-family rental (SFR) asset-classes Term securitization (ABS/MBS) structures The originator's readiness assessment playbooks Timeshare receivables asset-classes Trade receivables and supply chain finance asset-classes Transitioning between capital providers playbooks True sale and perfection legal Warehouse facilities structures When things go wrong playbooks Whole business securitization asset-classes Wind-down lifecycle-events