Escrow accounts

Under the escrow account agreement, one party (the Bank - the escrow agent) undertakes to open a special account (escrow account) for the other party (the owner of the escrow account - the Depositor) for recording and blocking the funds received by the Bank (the escrow agent) for the purpose of transferring them to a third party (the Beneficiary) upon the occurrence of certain grounds provided for in the escrow account agreement.

The main purpose of using escrow accounts is to minimize the risks of all counterparties by creating conditions that reliably guarantee the fulfillment of obligations.

The principle of operation of the escrow account

On the basis of the main agreement (purchase/sale/delivery, etc.), a 3-party escrow account agreement is concluded between the buyer and the supplier: the Bank (escrow agent), the buyer-Depositor and the seller-Beneficiary.

The Buyer - Depositor opens an escrow account in Belarusian rubles or foreign currency at the Bank (escrow agent).

The Buyer - Depositor places funds in an escrow account in the Bank (escrow agent), and the Beneficiary seller receives them after fulfilling the terms of the escrow account agreement.

Upon fulfillment of the terms of the transaction and submission of all necessary documents to the Bank (escrow agent), the Bank (escrow agent) transfers the funds to the seller - the Beneficiary.

The closing of the escrow account is carried out by the Bank (escrow agent) after the transfer of funds to the seller - the Beneficiary or the return of funds to the buyer - the Depositor.

Advantages of an escrow account

Guarantee for the seller and the buyer: the buyer is confident in the delivery of the purchased goods (work or service), the seller - in the receipt of money.

The suspension of operations on the escrow account, the imposition of an arrest, and the application of a levy on the funds held in the escrow account for the obligations of the Depositor to third parties and the obligations of the Beneficiary are not allowed, except in the following cases:

the request for recovery of funds held in the escrow account is made according to the executive document, the type of recovery corresponding to the purpose of the escrow account;

the presence of grounds provided for by legislation in the area of ​​AML/CFT.

In case of non-fulfillment of the terms of the main contract, the money will be returned to the buyer - the Depositor.

An additional independent control of the Bank (escrow agent) is carried out on compliance of the documents provided by the seller - Beneficiary with the terms of the escrow account agreement.

Funds in the escrow account are under the control of the Bank (escrow agent) until the terms of the transaction are fulfilled.

Conditions for opening and maintaining an escrow account at TС Bank CJSC.

Appendix 1 Depositor's application for the conclusion of an escrow account agreement.

Appendix 2 Beneficiary's statement on the conclusion of the Escrow Account Agreement.

Appendix 3 Statement on the existence of grounds for transferring the deposited amount.

Appendix 4 Statement on the return of the deposited amount.

Appendix 5 Depositor's statement about changing the terms of the escrow account agreement.

Appendix 6 Beneficiary's statement about changing the terms of the escrow account agreement.