We have a customer who has authorized ADP to initiate 1031 Fed wire draw down request. I have never heard of this, but have been researching. I am looking for another bank that has a customer with this arrangement. I am assuming that we would have a special agreement set up with our customer? Also, we use a correspondent bank for our wires instead of Fed, so does that change anything about this type of transaction? I am looking for any kind of guideance someone can provide.

This is very common for payroll purposes, especially with ADP. You need to contact your attorney to have an appropriate agreement drafted if you choose to do these.