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Procuration
Procuration
Procuration
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Procuration (from Latin procurare 'to take care of') is the action of taking care of, hence management, stewardship, agency. The word is applied to the authority or power delegated to a procurator, or agent, as well as to the exercise of such authority expressed frequently by procuration (per procurationem), or shortly per pro., or simply p.p.[1]

Etymology, history, and usage

[edit]

The correct usage is the subject of some debate. It has been understood as both "through the agency of" and "on behalf of".[2][3]

The reason for this is that the meaning of the phrase per procurationem is ambiguous if used with undeclinable English names.

Procuratio is related to the words "pro" (for/on behalf of/instead of) and "cura" (care/attention). It is thus close in meaning to "agency" — acting instead of someone. The phrase 'per procurationem' thus means "by/through agency".

Note that the phrase does not contain a preposition "of". This is because this idea would be expressed through the genitive case in Latin. With time, Latin or Latinized names fell out of usage, and the genitive case of the agent's name (in English "of Mr X") was thus lost. The original would look like this:

Praeses
per procurationem Secretarii

or

Michael Angelo Baltazar Senior
per procurationem Josephi Bloggi Junioris (by agency of Joe Bloggs Jr.)

This seems to be the most simple and logical reading.

The other option is that "per procurationem" could be understood as a complete adverbial phrase in itself — "by the agency [of another]", without a dependent genitive. However, this would mean that two people signed the letter, one in his own person, one "by the agency of another" (without that other being expressly indicated).

Business usage

[edit]

A common usage of per procurationem in the English-speaking world occurs in business letters, which are often signed on behalf of another person. For example, given a secretary authorized to sign a letter on behalf of the president of a company, the signature takes the form:

p.p. Secretary's Signature
President's Name

or

President's Name
p.p. Secretary's Signature

Commonly in practice, an alternative form is used:

Secretary's Signature
p.p. President's Name

In German-speaking countries, ppa. (per procura autoritate) indicates that the person signing the document has special authority according to commercial law to sign documents in the name and on behalf of the company that a normal employee or representative of the company does not have.

Ecclesiastical usage

[edit]
Main article: Canon law (Church of England)
See also: Procurator (canon law) and Procurator (Russia)

In the ecclesiastical law of the Church of England, procuration is the provision of necessaries for bishops and archdeacons during their visitations of parochial churches in their dioceses. Procuration originally took the form of meat, drink, provender, and other accommodation, but was gradually changed to a sum of money. Procuration is an ecclesiastical due, and is therefore suable only in a spiritual court. In those dioceses where the bishops' estates have vested in the ecclesiastical commissioners, procurations are payable to the commissioners, who, however, have abandoned their collection.[1][4]

Financial usage

[edit]

Procuration is also used specifically for the negotiation of a loan by an agent for his client, whether by mortgage or otherwise, and the sum of money or commission paid for negotiating it is frequently termed the 'procuration fee'.[1]

See also

[edit]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Procuration

View on Grokipedia
from Grokipedia
Procuration is a legal referring to the act by which one person, known as , appoints another , the representative or agent, to act on their behalf in legal matters, effectively granting the to manage affairs or enter into transactions as if were doing so personally. This authorization, often formalized in writing, serves as a mechanism for delegation in various contexts, including personal, commercial, and administrative affairs, and is closely akin to a in systems. The term originates from the Latin procurare, meaning "to take care of" or "to manage," and entered the in the late period between 1375 and 1425 as procuracion, initially denoting or agency. In civil law traditions, such as those in , procuration is explicitly defined as a unilateral juridical act that confers representational authority, which may be addressed either to the representative or to third parties with whom the representative will interact. This form of delegation can be general, allowing broad powers, or special, limited to specific acts, and is revocable by the principal at any time unless otherwise stipulated. In commercial settings, particularly in European jurisdictions like and , procuration—often termed prokura—represents a specialized type of reserved for business operations, enabling the holder to sign and bind the principal or company in dealings with third parties, typically granted only to trusted employees or partners. Similarly, in , procuration functions as the standard equivalent to a , requiring notarization for certain transactions to ensure validity and enforceability. Historically, the practice traces back to , where procurators managed estates and represented interests, evolving into modern agency principles that underpin and relationships worldwide. The term has also been used historically to denote the act of procuring or obtaining something, as well as a or provision (such as for a bishop's in contexts) and in banking as a indicating (p.p.).

Origins and Etymology

Linguistic Roots

The term "procuration" derives from the Latin noun procūratio, the action noun formed from the procurāre, meaning "to take care of" or "to on behalf of." This combines the prefix pro- ("for" or "on behalf of") with cūrāre ("to care for" or "to attend to"), the latter rooted in cūra ("care" or "concern"). In Roman administration, procurators served as fiscal and administrative agents, embodying this sense of delegated , which laid the groundwork for the term's later applications. The word entered English in the late period, approximately 1375–1425, as procuracion, borrowed directly from the Latin procūrātiōn- (stem of procūrātiō) and mediated through Anglo-French procuration. Initially, it denoted general , , or the act of obtaining something through care or effort, reflecting its Latin origins in oversight and . Early attestations appear in medieval English texts, such as religious in the Corpus of Middle English Prose and Verse, where procuracion refers to diligent agency or handling of affairs on another's behalf. By the , the semantic field of "procuration" began shifting in English legal contexts from broad caretaking to more formalized , particularly in documents empowering agents to act in or roles. This evolution is evident in early legal manuscripts, where the term increasingly signifies the appointment or instrument of delegated , aligning with its growing precision in administrative and proxy functions.

Early Historical Development

The concept of procuration emerged in ancient , where the term procurator denoted an official appointed to manage financial and administrative affairs on behalf of another, often serving as an imperial agent overseeing estates, provinces, or fiscal matters. From the reign of Emperor (27 BC–AD 14), procurators were systematically employed in official capacities, evolving from private stewards in Roman households to key equestrian officials handling imperial revenues and governance in non-senatorial provinces. Under Emperor Claudius (r. AD 41–54), this role expanded notably, with procurators like appointed to govern regions such as , where they exercised judicial and financial authority directly under the emperor, reflecting the system's growing centralization. In medieval Europe, the institution of procuration adapted to feudal structures, particularly as stewards or agents for absent lords who delegated management of lands, revenues, and legal affairs amid the decentralized power dynamics of the post-Roman world. Drawing from Roman precedents, procurators functioned as intermediaries in manorial and seignorial contexts, ensuring continuity of administration during periods of , royal absences, or disputes, thus bridging personal agency with emerging institutional hierarchies. This evolution was influenced by the revival of Roman legal texts in the Carolingian era, where procurators began appearing in charters and court records as representatives empowered to act in their principals' stead. By the , procurators had become integral to both and civil courts across , serving as legal representatives who could plead cases, negotiate settlements, and execute mandates without the principal's physical presence. In jurisdictions, which preserved Roman procedural allowances more readily than secular Germanic traditions requiring personal attendance, procurators handled litigation in consistory courts, often combining with agency roles. This institutionalization marked a shift toward professionalized representation, facilitating the resolution of disputes in an increasingly litigious society. A pivotal milestone occurred with the (c. 1140), compiled by the monk , which formalized procurators' status in by integrating earlier patristic and Roman sources into a cohesive framework that defined their appointment, powers, and limitations as advocates and agents in church proceedings. This text, drawing on distinctions between procurators (as proxies) and orators (as pleaders), established procedural norms such as the requirement for written mandates and prohibitions on usury-like fees, profoundly influencing the development of legal representation in both religious and secular spheres.

Definition and Core Concepts

Procuration, in its primary legal sense within civil law systems, denotes the act of appointing an agent, or procurator, to manage or transact affairs on behalf of a principal, enabling the agent to act with the same legal effect as the principal themselves. This unilateral juridical act confers representative authority, typically formalized in a written instrument such as a letter of procuration. Unlike the concept of , which evolved separately, procuration traces its roots to practices where procurators handled administrative and legal matters for absent principals, serving as an early precursor to modern agency arrangements. Central to procuration are several key principles that govern the agent's role and the principal-agent relationship. The procurator owes fiduciary duties of loyalty, care, and , requiring them to prioritize the principal's interests, avoid conflicts, and provide accountings of actions taken. The scope of authority may be general, granting broad powers to handle diverse affairs like financial transactions or , or special, restricting the agent to specific tasks such as executing a single . Additionally, procuration is inherently revocable by the principal at any time while competent, unless the instrument specifies irrevocability or circumstances like coupled obligations make inequitable, ensuring the principal retains control over the . Procuration differs from related terms in scope and application. A mandate, while overlapping as a broader contractual framework for delegation in civil law, encompasses ongoing obligations beyond mere representation, whereas procuration focuses on the initial conferral of authority for third-party dealings. In contrast, a proxy is narrowly confined to authorizing votes or decisions in limited contexts, such as corporate meetings, without the expansive agency powers of procuration. In civil law traditions like that of , procuration exemplifies a formal agency instrument, often used to empower representatives in or matters, highlighting its practical utility in structured legal environments.

Role in Agency and Power of Attorney

In agency law, procuration serves as a formal enabling an agent, known as a procurator, to act on behalf of a principal in matters, such as signing contracts, negotiating deals, or managing operational aspects of a company. This delegation creates a relationship where the procurator must exercise the granted powers within the specified scope, ensuring that actions align with the principal's interests and avoid exceeding authority. For instance, in corporate settings, executives may grant procuration to subordinates for routine transactions like vendor agreements or inventory management, allowing efficient delegation while maintaining principal oversight. Procuration functions as a subtype or equivalent to a (POA) in certain jurisdictions, particularly under civil law influences like 's, where it is treated alongside POA and mandate to grant financial or general powers. In Louisiana Revised Statutes §6:311.1, procuration authorizes agents to handle deposit accounts, certificates of deposit, funds, or safe deposit boxes in federally insured financial institutions, with the institution permitted to rely on the document unless revoked by written notice. This equivalence underscores procuration's role in broader agency frameworks, where it mirrors POA by vesting the agent with representative authority as if the principal were acting personally. For validity, a procuration must typically be executed as a written instrument, often requiring notarization to verify the principal's and capacity, along with a clear delineation of the powers conferred to prevent actions—those exceeding the granted scope that could expose the principal to unauthorized liabilities. In , under principles governing mandates (which encompass procuration), the document must specify the agent's authority explicitly, and financial institutions may act on an original or until receiving formal written , providing a reasonable period to process the notice. Failure to outline powers precisely can lead to disputes, as seen in cases where agents attempted actions beyond their mandate, resulting in invalidation or principal recourse against the procurator for breach of . In practice, procuration in corporate often includes limitations such as non-transferability without the principal's explicit , ensuring the remains personal to the designated procurator and cannot be sub-delegated to avoid chain-of-agency risks. For example, a principal might issue procuration to a regional manager for deal negotiations up to a monetary threshold, revocable upon , which streamlines operations while safeguarding against overreach; however, any attempt to transfer this power without approval renders subsequent actions potentially void.

Ecclesiastical Applications

Procurators in Canon Law

In the canon law of the , a procurator is defined as a representative appointed by a to act on their behalf in trials and administrative proceedings, enabling to delegate authority while ensuring compliance with judicial norms. This role is outlined in the Code of , particularly in canons 1481–1490, which govern the appointment and functions of procurators within the framework of processes (cann. 1400–1500). Procurators handle tasks such as presenting documents, responding to petitions, and participating in sessions, thereby facilitating access to in matters like nullity cases or disciplinary actions. Procurators are categorized into general and particular types based on the scope of their authority. A procurator manages ongoing ecclesiastical affairs, such as the financial and temporal administration of a or , where they act as the under the superior's direction. In contrast, a procurator is appointed for specific cases, such as representing a party in nullity proceedings or other contentious trials, with powers limited to the defined matter. This distinction ensures tailored representation while preventing overreach in sensitive church governance. The appointment of a procurator requires a formal written mandate from the principal, which must be authentic and presented to the before the procurator assumes duties. The appointee must accept the role explicitly, and both procurator and are required to have reached the age of , possess a good reputation, and—for advocates—be Catholic unless the diocesan bishop permits otherwise; episcopal approval is often necessary to validate the appointment in judicial contexts. A single procurator is typically appointed unless multiple are justified, and they cannot substitute another without express faculty, underscoring the principal's control over representation. Historically, procurators played vital roles in medieval papal courts, where they represented petitioners in judicial disputes, diplomatic negotiations, and administrative appeals to the starting from the thirteenth century. For instance, proctors empowered by letters of appointment transacted business on behalf of English or German clerics, handling litigation over benefices or jurisdictional conflicts amid the growing centralization of papal authority. These figures bridged distant dioceses with the papal bureaucracy, exemplifying the evolution of delegated agency in ecclesiastical law.

Procuration as a Church Due

Procuration originated as a customary payment in the form of hospitality extended to visiting bishops, archdeacons, or their retinues during diocesan visitations in the medieval church, providing for essential needs such as food, drink, and lodging. This practice was formalized in canon law as "necessariorum sumptuum exhibitio, que ratione visitationis debetur," ensuring the support necessary for ecclesiastical officials to perform their supervisory duties without undue financial burden. Procurators often played a role in arranging these visitations, facilitating the logistical and administrative aspects to ensure compliance with church obligations. The legal foundation of procuration as a church due was rooted in 13th-century English ecclesiastical law, drawing from earlier canon law provisions such as those in the Decretals (Extra, 3, 39, 6) and regulated by councils including the Third Lateran Council of 1179 and the Oxford Council of 1222. These dues were enforceable exclusively in spiritual courts, emphasizing their ecclesiastical nature, and the amounts were typically scaled according to the host parish's or benefice's income to reflect economic capacity. For instance, records from the late 13th century show payments around 32 shillings and 3 pence for a bishop's retinue, while by the 14th to 18th centuries, standard rates often reached 4 marks (equivalent to 53 shillings and 4 pence), though smaller parishes might pay less, such as 4 to 10 shillings in 16th-century instances. Over time, procuration evolved from in-kind hospitality to predominantly monetary payments by the 14th century, but this shift also led to abuses, including inflated retinue sizes that increased costs beyond reasonable limits. Following the Reformation, particularly after the 1539 Act of Suppression, the practice was phased out in many English dioceses as part of broader reforms to clerical finances and visitations. Remnants persisted in Anglican traditions and some Catholic contexts into the 19th century, but key legislative changes, such as the Pluralities Act 1838 in England, imposed strict limits on such exactions to curb pluralism and excessive demands on parishes. The Ecclesiastical Jurisdiction Measure of 1963 later abolished surviving elements, marking the end of procuration as an obligatory due.

Financial and Commercial Contexts

Banking and Signing Authority

In banking, procuration commonly manifests through "per procurationem" (p.p.) signatures, which allow designated employees, officers, or agents to endorse , execute fund transfers, or authorize routine transactions on behalf of account holders or corporate principals. This practice stems from a general or specific , enabling efficient delegation while signaling limited agency. The legal framework for procuration in banking varies by jurisdiction but generally requires explicit bank approval and supporting documentation that delineates the agent's scope, such as limits on transaction amounts without the principal's consent. For instance, in , a procuration serves as of the agent's restricted , binding the principal only if the agent operates within those actual limits. Similarly, under Louisiana Revised Statutes § 6:311.1, financial institutions may rely on a procuration for transactions unless provided written of , protecting from liability for actions taken prior to such and a reasonable opportunity to respond. In corporate banking, procuration is frequently granted to officers for handling routine operations, such as approving payments or inter-account transfers up to predefined thresholds, streamlining daily without constant principal involvement. typically demands written notice to the bank, as exemplified in law, where institutions remain shielded from prior transactions even if the procuration is later contested. Procuration carries risks of misuse, including unauthorized transactions that could lead to financial loss or , with bearing liability if the agent exceeds limits; banks mitigate this by verifying the authorizing documents and monitoring for irregularities before processing.

Loan Negotiation and Fees

In financial intermediation, particularly within the mortgage sector, procuration refers to the role of agents such as mortgage brokers who negotiate on behalf of clients, earning a procuration as compensation from the lender upon successful completion of the transaction. This typically ranges from 0.3% to 0.5% of the value, serving as the primary for the broker's efforts in sourcing, advising on, and facilitating the . As of 2025, procuration fees typically stand at around 0.35% of the value. The practice of procuration fees in mortgage contexts traces its roots to 19th-century , where fees were permitted for agents introducing borrowers to lenders, as evidenced by agreements such as the £10 procuration fee paid to estate agents in 1951 for facilitating introductions. This mechanism was distinct from traditional brokerage commissions, which often involved direct client payments for comprehensive advisory services, whereas procuration fees specifically compensated for the introductory and role without implying full brokerage involvement. In modern markets, procuration fees are paid by lenders to brokers only after loan completion, reflecting standardized commercial practices that incentivize efficient intermediation. For instance, lenders like Nationwide pay 0.20% for certain applications, including rate switches and retention products. Regulatory oversight in the , primarily by the (FCA), ensures transparency in procuration fee structures to prevent conflicts of interest and promote fair outcomes for consumers. The FCA's assessments, including under the Consumer Duty framework, confirm that variations in fee levels do not typically bias broker recommendations, with requirements for clear disclosure of remuneration sources to maintain market integrity.

References

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  2. https://thelawdictionary.org/procuration/
  3. https://dictionary.findlaw.com/definition/procuration.html
  4. https://disabilityrightsla.org/resources/representation-procuration-and-mandate-power-of-attorney/
  5. https://www.dictionary.com/browse/procuration
  6. https://law.justia.com/codes/louisiana/civil-code/article-2987/
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  8. https://bolagsverket.se/en/foretag/enskildnaringsverksamhet/startaenskildnaringsverksamhet/firmateckningforenskildnaringsverksamhet.829.html
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  36. https://www.unbiased.co.uk/discover/mortgages-property/buying-a-home/mortgage-broker-fees
  37. https://ashborland.com/post/how-does-commission-work-for-mortgage-brokers
  38. https://woodhallmortgages.co.uk/understanding-mortgage-broker-fees-and-commissions-explained/
  39. https://www.mortgagefinancegazette.com/features/150-years-gazette-10-12-2019/
  40. https://www.nationwide-intermediary.co.uk/support/procuration-fees
  41. https://www.mortgagestrategy.co.uk/news/nationwide-pay-retention-proc-fees-today/
  42. https://www.mortgagestrategy.co.uk/news/proc-fee-levels-not-sway-brokers-choice-lender-fca/
  43. http://www.fca.org.uk/publication/correspondence/consumer-duty-letter-mortgage-intermediaries.pdf
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