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Manager Loans & Limits

Money Advances from Managers

You may possibly, from time to time, receive advances from your management. Many personal managers go out and spend their own money for things that an artist (songwriter or producer) they represent might need, at the time of need.  This is normally a good thing.  But, your manager will need to be reimbursed for his or her expenses.  So, outside of any money advances you might get from the management, you should consider putting a limit on how much your manager can go out and spend in your behalf, without authorization from you. 

You do not want your manager going out and spending $20,000.00 on anything in your behalf, without your knowledge of the expenditure(s) up front!

Bank Account Access

You must also limit your manager’s access to your business account.  And never give your management total “Power Of Attorney”. This is an absolute “no-no!”  Now on the other hand, you may choose to give your manager “Limited Power Of Attorney”. This basically breaks down to meaning that you and your manager will mutually make a list of the things that he or she can sign off on - in your behalf.  It will be very important that you get in writing what your manager’s spending limit will be.  Make sure your agreement clearly states that your manager will need written approval from you for any major expenses (in your behalf).

Power of Attorney

When you give someone the authority to act on your behalf, you are granting power of attorney.

· Limited power of attorney grants only narrow rights, like giving a friend your check-writing powers while you are on an extended vacation.  Limited power of attorney is revoked if you become mentally disabled.

· Ordinary power of attorney give broader powers over your finances. They expire if you become mentally disabled.

· Durable power of attorney usually grant the broadest powers of all. A durable power of attorney remains effective if you become incapacitated.