Fortis Escrow & Settlement Services, your trusted third party to secure payment and delivery
An escrow (account) is a blocked bank account held with a neutral and financially trusted third party, the escrow agent. The escrow agent will distribute the money in the blocked bank account only on the basis of an agreement between the buyer and seller. Fortis Escrow & Settlement Services draws up the escrow agreement and opens a dedicated escrow account. The buyer can use this escrow account to deposit money and/or documents while waiting for the seller to deliver. The agent releases the money and/or documents from the escrow account after the release conditions, described in the escrow agreement, have been met.
Escrow for securing obligations arising from acquisitions
When acquiring a company the buyer is generally prepared to take calculated risks, but requires security for the uncertainties revealed in the due diligence survey. Examples of such uncertainties are: incomplete environmental permits, the possibility of leases not being renewed, the departure of important managers, serious financial underperformance within a short period following take over, or any other threats to the success of the company to be acquired. The buyer requires 100% cover for such uncertainties. The best solution is to set up an escrow agreement and retain a certain amount of the purchase price, which is paid into an escrow account. This provides maximum security for both buyer and seller.
Escrow for the financial settlement of international trading
When entering into a trading transaction with previously unknown parties, you may desire protection from non-payment by the buyer or protection from non-performance by the seller.
Escrow for the financial settlement on cross-border projects
When arranging the financial settlement for projects (e.g. in the construction industry) contractors require payment security and their clients need performance security. By establishing an escrow agreement, Fortis Escrow & Settlement Services can execute the required cash management and the safe distribution of the (pre-) payments providing certainty to all beneficiaries that they will receive their money.
Escrow for the settlement of emission rights
Whatever type of trade in emission rights you want to secure, whether you are a seller, a buyer, a broker or part of a conglomerate of buyers, Fortis Escrow & Settlement Services helps to ensure an efficient and risk- free exchange of emission rights versus payments.
For more information please visit our ABN AMRO Escrow & Settlement Services section.