Liftbrief / Direct questions
19. How do I protect a prepaid jet-card or membership deposit?
Treat the funding arrangement as a separate diligence decision from the quality of the flights. NBAA’s brokering guidance recommends documenting how deposits are held and the applicable cancellation and refund arrangements. (nbaa.org)
Request a funding-evidence pack:
| Question | Evidence to request |
|---|---|
| Who receives the money? | Legal entity and verified payment instructions |
| Where is it held? | Account structure and governing documents |
| Is segregation or escrow claimed? | Actual agreement, account ownership and release conditions |
| What is refundable? | Contract clause, deductions and payment timetable |
| Can terms or prices change? | Amendment and repricing provisions |
| What happens on termination or insolvency? | Counsel’s analysis of the buyer’s contractual position |
| What financial evidence is available? | Relevant accounts, filings or information supplied under confidentiality |
Do not accept the words protected, segregated or escrow as a complete legal analysis. Ask counsel what the documented structure achieves for this buyer.
Set an internal maximum prepaid exposure and a replenishment approval process. Before making a large transfer, independently verify payment instructions through a known contact—not only the email containing the bank details.
If the provider will not supply material funding information, record the gap explicitly. Do not replace missing evidence with an unsupported conclusion that the provider is either secure or distressed.