What is an escrow account?

Escrow is an account on which the bank undertakes to accept and credit to the conditional custody account opened with the client (account holder), funds received from the account holder, and transfer such funds to the person (s) specified by the owner account (beneficiary or beneficiaries).

How is the escrow account used in Ukraine?

The escrow account is used to service the squeeze-out procedure.

What is a “squeeze-out procedure”?

A procedure that allows the owner of 95% of the shares of a joint stock company to repurchase shares from other shareholders.

BENEFITS

• The funds remain safe until the fulfillment of obligations under the agreement between the Client and the Beneficiary;
• The Parties are insured against the risks of non-performance of obligations under the Agreement between the Client and the Beneficiary;
• No funds may be levied or seized on the funds in the Account, neither under the obligations of the Bank, nor under the obligations of one of the parties to the agreement.

Payment from escrow accounts

Payments from escrow accounts are made in accordance with the procedure of forced redemption of shares.

How to get paid

The Client applies to the Bank’s branch, where he goes through the identification and verification procedure in accordance with the requirements of the current legislation of Ukraine.
An individual signs an application for payment of funds from an escrow account and provides:

• passport and personal tax number – required;
• documents confirming the change in personal data – if necessary.

The legal entity provides:

• application for payment of funds from the escrow account passport and personal tax number of the person authorized to act on behalf of the legal entity;
• documents confirming the authority of the authorized person;
• Unified State Register of Enterprises and Organizations of Ukraine statement (for legal entities that are not identified in the bank).