Escrow Agent
Escrow Agent Services
Definition: escrow agent
A legal arrangement whereby parties to a business transaction place securities or anything of value with a neutral third-party in order to secure representations, warranties, performance commitments or any obligation one party has made to the other.
Roles of the escrow agent
- Acts as a neutral third party
- Receives and safeguards assets on behalf of the contracting parties.
- Invests monies placed in escrow in accordance with written directions
- Acts as a cash conduit to ensure proper funds disbursement to the parties
- Releases assets pursuant to pre-determined notices
- Prices portfolios against benchmark values
