The Ultimate Guide to Escrow Accounts for Private Placements

Escrow accounts play a crucial role in private placements, holding investor funds until the satisfaction of specific offering terms to ensure regulatory compliance and safeguard investor interests. In this video, we provide an in-depth guide on the importance of escrow accounts for private placements and the benefits of using a trust company for these accounts.

Opting for a trust company over a traditional bank account introduces the advantage of active independent oversight and FDIC insurance coverage up to $150 million per account. Using an escrow agent underscores the commitment to the prudent management of funds in private offerings.

- Learn the role of escrow accounts in private placements.
- Discover the benefits of using a trust company versus a traditional bank
account for escrow accounts.
- Understand the process of selecting an escrow agent and establishing an
account, which can take as little as one business day with platforms like
Eastern Point Trust Company.
- Explore the steps involved in the escrow process, from fund transmittal to
breaking escrow once offering terms are satisfied.
- Recognize the added security and compliance benefits provided by trust
companies, enhancing investor confidence and ensuring adherence to SEC
and FINRA rules.

Selecting an escrow agent to establish an account can typically take one to two weeks, but platforms like Eastern Point Trust Company can expedite this process to as little as one business day. The escrow process involves waiting for the transmittal of funds by investors, either directly into the escrow or through a broker dealer, which is critical for proceeding with breaking escrow. Once the terms of the offering have been satisfied, the offeror may request to break escrow and begin receiving funds.

For more information on private placement escrow accounts, or to get started, visit https://www.easternpointtrust.com/.

Contact Eastern Point Trust Company to learn more about the benefits of using trust companies for escrow accounts in private placements.

Read more: https://www.easternpointtrust.com/articles/ultimate-guide-to-escrow-accounts-for-private-placements

Learn about Private Placement Escrow Accounts: https://www.easternpointtrust.com/private-placement-escrow-services