Principal paying agent

The Principal Paying Agent is responsible for setting up and monitoring the various cash accounts on behalf of the Issuer. It is also responsible for transferring monies to the Payment Account in readiness for Interest Payment Dates. One of the accounts is the Expense Account, which will have monies on deposit which may be withdrawn to pay for the issuer s Extraordinary Administrative Expenses. 

Principal Paying Agent—Party primarily responsible to claim funds due on security from an issuer/borrower and disburse same to paying agents, other agents, or investors. (See Paying Agent.)... 

In the case of global notes, acting on behalf of the issuer to supervise payments of interest and principal to investors via the clearing systems, and in the case of definitive notes, paying out interest and coupon on presentation by the investor of the relevant coupon or bond to the Paying Agent. 

In this context, the buyer is the principal who pays for the work and decides how much to help the supplier. The supplier is an agent who knows specifics regarding production and his capability (which is unknown to the buyer). The set-up cost depends on the buyer s specifications, which in turn, depend on the buyer s resource commitment, x, and on the supplier s set-up capability, [Pg.66]

To make this more concrete, let us consider a simple example. Let a G SR denote the agent s action and let the principal s revenue be tt = a -f e where e is A (0, (7 ). The agent s cost for his action is ca. The principal will pay the agent a compensation s tt) that is based on the observable revenue tt, and for simplicity we will consider linear compensation systems... 

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