<P> This service is offered by multiple bankers as an outsourced product . </P> <P> Escrow arrangements are often used as part of mergers and acquisitions to supplement the warranties and indemnities offered by the seller (s). This will be particularly likely where the credit risk of the seller (s) is of a poor quality and therefore the buyer is concerned about their ability to recover any sums that may become due . </P> <P> Unlike many other forms of escrow, escrow arrangements in corporate transactions are often designed to last for extended periods rather than simply to complete the transfer of an asset . There is also commonly the requirement for an escrow agent to adjudicate on the validity of a claim on the escrow funds, which can lead to the risk of dispute between the parties . </P> <P> Due to the length that the funds are held, the escrow arrangements need to take into account different considerations to those for other escrow arrangements, for example (i) information provision to the parties; (ii) application of interest earned on the funds; and (iii) credit worthiness of the financial institution . </P>

Who owns the money in an escrow account