In these transactions three parties are involved: a depositor, a recipient and an Escrow Agent (Trustee).
In cases where there is a requirement to pay or receive a sum of money, upon the fulfillment of certain terms, the Trust Co. holds the monies (or documents) and transfers them to the appropriate party to the agreement upon the fulfillment of the relevant conditions. In such cases the trustee acts as a trustworthy and objective body who will ascertain that the terms of the agreement have been fulfilled and that the money or documents may be transferred to the party to whom they become due. Escrow transactions are also used in cases where a program initiator seeks investors.
