Escrow Agreement Page 3
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
133.2.1
As soon as practicable, but no later than 3 Business Days from execution of this Escrow
Agreement, the Escrow Agent shall open the escrow account in the name of
___________________________________
Branch
_______________________
(the
“Escrow Account”). The Escrow Agent undertakes to the other Parties that it shall
operate the Escrow Account strictly in accordance with the provisions of this Escrow
Agreement.
3.2.2
The Escrow Agent shall accept deposit of the Escrowed Amount in the Escrow Account
upon delivery of the same by the Buyer in accordance with Article 3.1. The Escrow Agent
hereby confirms that it shall not claim any right or lien over the Escrowed Amount. The
Escrow Agent shall hold the Escrowed Amount for the benefit of the Buyer and the Seller.
The Escrow Agent shall place the Escrowed Amount or any part thereof into interest
bearing term deposits of __________________________ (“Fixed Deposit”), provided
such deposits are made on a full liquidity basis and shall be available for withdrawal or
disbursements as contemplated by this Escrow Agreement and within the time frame
prescribed hereunder. The Escrowed Amount shall be deposited in the Fixed Deposit for 7
(seven) days each on an automatic rollover basis along with the interest accrued on the
earlier
deposit
till
the
Escrow
Agent
receives
the
Buyer’s
Instructions
or
____________________ whichever is earlier and the withdrawal shall be subject to break
cost as applicable.
3.3
Instructions to Escrow Agent
3.3.1
The Escrow Agent shall release the Escrowed Amount only,
(a)
Forthwith also with interest accrued on the escrowed amount to the account of the
Seller by way of wire transfer, on receipt of the written instruction of the Buyer
from the Seller in form set out in Schedule A (“Buyer’s Instruction”) ; or
(b)
If the Escrow Agent receives a copy of an Award, in which event the Escrow Agent
shall act as per the instructions set forth in such Award; or
(c)
On the Buyer intimating the Escrow Agent in writing of the non registration of the
sale deed as on _____________________, in which event the Escrow Agent shall
forth with release the Escrowed Amount lying in the Escrow Account to the Buyer
together with applicable interest which shall be competitively determined by the
Escrow Agent at its sole discretion as per the market conditions and shall issue a
written intimation of such release to the Sellers.
3.3.2 No notice, instruction or document shall be sent by any of the other Parties to the Escrow
Agent via a facsimile.
Article 4
Representation and Warranties
4.1
The Parties have the necessary power, authority and the legal right to agree to these
terms and have taken all necessary actions required for the validity, enforceability and
performance of their respective obligations / duties in terms hereof;
4.2
This Escrow Agreement constitutes a legally, valid and binding obligations of the Parties,
enforceable against the Parties in accordance with applicable law;
4.3
The entry into and performance by the Parties of its obligations / duties under this Escrow
Agreement and any other document related hereto does not and will not violate, in any
respect:
(a)
any law, regulation, judgement, decree or order of any
legislative, executive,
judicial, quasi – judicial or regulatory authority (hereinafter referred to as
“Government Authority”) having jurisdiction or control over the Parties ;
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business