SBI assumes the role of an Escrow Agent to facilitate operations of Escrow account as per agreement.
We can facilitate operation of Escrow for:
Merger and Acquisition Transactions
During a merger & acquisition deal, the buyer is generally required to provide a security deposit which is a certain percentage of the purchase price and may be kept in Escrow/Trust Account until satisfaction of the relevant conditions or any adjustments to be made to the purchase price.
Purchase and Sale of Asset
While entering into a Asset Sales/Purchase transaction, parties may desire protection for non-payment by the buyer or protection for non-performance by the seller. A buyer or seller can invite the counter party to settle its transaction with Escrow/Trust arrangement to secure the payment/delivery on due date eg. Sales/Purchase of ships etc.
While arranging the financial settlement for projects, contractors require payment security and their clients need performance security. By establishing an Escrow arrangement, SBI as Escrow Agent can provide the required safe custody of upfront deposit and distribution of the payments and thus provide certainty to all beneficiaries that they will receive their dues, as per terms of agreement.