Escrow account

Escrow account – is an instrument for providing seller’s and buyer’s financial safety upon carrying out any asset sale-purchase deal. Purpose of Escrow account is to ensure fulfillment of seller’s and buyer’s mutual engagements, and Bank is the guarantor for the fulfillment of the engagements.

 

The account is convenient for most agreements concerned with real estate and any other property deals, including trade deals, sale-purchase of enterprises and transfer of shares.

 

Escrow account is the account of conditional deposition, i.e. the account where pledged funds are kept blocked until execution of definite conditions. The deals execution is governed by Civil Statute of Republic of Latvia.

 

AS Expobank (hereinafter – Bank) provides Escrow account opening for natural and legal persons.

 

In AS Expobank Escrow account opening and service is based on tripartite agreement concluded between seller, buyer and Bank. The agreement specifies conditions for fulfillment of engagements and due dates. During agreement validity period funds meant for payments according to the deal are blocked on Bank’s account and seller may not receive them without buyer’s agreement. Buyer on his turn gets guarantee that funds will be remitted to seller only after fulfillment of engagements confirmation, i.e. after all documents are dully processed and submitted to Bank.

 

Having current account with AS Expobank for seller or buyer is a mandatory condition for Escrow account opening. Bank opens Escrow account in AS Expobank’s customer name. If seller or buyer is Bank’s customer, Escrow account opening is executed according documents, which are already at Bank’s disposal. In case neither seller nor buyer is AS Expobank’s customer, any part of sale-purchase deal (or any other deal) should open current account with Bank in prescribed manner.

 

Partner of the deal, which is not Bank’s customer, provides the following documents:

Documents stipulating mutual engagements of seller and buyer are required for concluding Escrow account agreement (e.g. Sale-purchase agreement, documents confirming right of property etc.) The documents may be submitted directly to Bank or handed over to Bank’s representative in Moscow.

 

Bank’s commission for Escrow account opening and service is determined according to AS Expobank’s Tariffs of Bank’s operations and other financial services.