An escrow account is a special one-time transaction bank account designed to secure payment for the purchase and sale of goods, services, properties and other assets.
In which case does the Bank pay the amount to the party specified in the Escrow Agreement?
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The Bank pays the amount to the party specified in the Escrow Agreement upon presentation of documentary proof of the fulfillment of the assumed obligations. If one of the parties to the contract does not perform the obligations on time or performs them improperly, the money in the escrow account is returned to the party that deposited the money.
Can funds in the Escrow account be pledged, blocked (placed under a lien), confiscated against the client's obligations?
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Only in the following cases:
- are related to the obligations arising from the
directions, cases, conditions or operations provided by RA legislation,
normative legal acts, the Agreement and the Order, or
- these funds are funds formed from the interest paid by the
Bank to the client for using the funds in the escrow account, or
- these funds are property provided for in paragraph 5 of
Article 190 of the Criminal Code of the Republic of Armenia, or