Series 22: Escrow Agreement

Escrow Agreement

To mitigate investor risk the issuer must enter an escrow agreement with an independent third party. The escrow agreement permits this party, normally a bank, to receive and hold investor funds until the obligations of all parties have been met. The third party is called an escrow agent, and the investor’s money is held in an escrow account. The escrow account ensures that purchasers will get their money back if the offering is cancelled and that issuers will receive the committed procee