Escrow account is an account opened with the Client, to which the Bank undertakes to accept and credit funds received from the Client and transfer such funds to the person (persons) specified by the Client (beneficiary or beneficiaries), or return such funds to the Client for the occurrence of the grounds provided for in the contract of conditional storage account (escrow).
Where applicable:
- mandatory sale of shares by shareholders at the request of the owner (persons acting jointly) of the dominant controlling stake;
- trade settlements with counterparties, the subject of which are goods, services, intellectual property rights;
- purchase / sale of real estate, including the relationship between the developer and the investor.
Advantages of Escrow account:
- ensuring compliance with the terms of contracts (reduction of financial risks).
- secure storage of funds, which is a fee under the Client's contract (funds cannot be used in expense transactions, which is an additional guarantee for both buyer and seller).
- elimination of delays and violations of payment deadlines, as the function of controlling payments is entrusted to the banking institution.
For whom it is opened (according to the legislation):
- business entities
- resident individuals
- non-resident investors (individuals and legal entities) - at the moment PRAVEX BANK does not open escrow accounts for non-residents.
