Escrow Services
PPM.net Can Serve as your Trusted Escrow Agent
An escrow agent creates an escrow account for the purpose of holding funds, or other instruments on behalf of one party, to be released to another party when a particular condition or event occurs.
• An escrow account is used to ensure that the funds or instrument held is not released until all the conditions of the transaction have been complied with.
• An escrow agent is a disinterested party who has no claims to, and administers the escrow account.
• The terms and conditions of the escrow account are detailed in the escrow agreement.
• The escrow agreement imposes the duties of a legal trustee on the escrow agent.
• Our affiliated attorneys act as your escrow agent handling all of your escrow arrangements
• The escrow agent holds a contractual and fiduciary duty to safeguard the funds or instrument held in the escrow account.
How PPM.net Escrow Services work for your Private Offering
Holding of and the transfer of shares/stock and funds.
Step 1: Seller delivers copies of the original certificate of ownership, i.e. stock certificates, to the escrow agent;
Step 2: Purchaser wires the acquisition price into the escrow account created for the transfer;
Step 3: Seller delivers the original certificates of ownership;
Step 4: Upon the performance of the conditions of the escrow agreement, the escrow agent then delivers the certificates of ownership to the purchaser and the funds to the seller.
Holding and eventual transfer of funds until accrual of minimum offering
A private placement memorandum or private offering requires that the investment funds be put into an escrow account up or until the accrual of at least the minimum offering detailed in the memorandum. The escrow agent will disburse the funds to the beneficiary upon the accrual of at least the minimum offering and the performance of the conditions outlined in the memorandum and the escrow agreement.
In a scenario that the minimum offering is not raised by the closing of the offering timeline, the investment funds shall be returned to the investor as detailed in the memorandum or the escrow agreement.
PPM.net and its affiliated attorneys can serve as the escrow agent for your transaction and handle all of your company’s escrow needs.
Contact Us
For more information on our escrow services, please Contact Us.
