PROVISION OF ESCROW SERVICES
An escrow is a legal arrangement to help parties perform their contracts and avoid disagreements.The escrow agreement has three main parties: A ‘depositor’ or the buyer, the ‘beneficiary’ or the seller and an ‘escrow agent’.The depositor is required to entrust money or property with the escrow agent.The escrow agent holds the escrow deposit until it can be released to the beneficiary upon the happening of some future event or the performance of some conditions as mentioned in the escrow agreement signed between the three parties.
As an independent trusted third party, Cyworld offers the valuable legal arrangement of Escrow Services.The Company acts as an Escrow Agent in commercial transactions involving existing or new customers.Such commercial transactions involve, among others, the sale and purchase of shares, the sale of immovable property etc.Cyworld has a number of internal legal officers who specialize in the preparation and correct execution of escrow agreements and can provide their valuable knowledge and experience gained throughout the years.
In practice a copy of the underlying agreement together with a draft of the Escrow Agreement that is prepared by the customer’s lawyers is reviewed by the company’s legal department.
In case that the parties are not customers of the Company, full set of corporate documentation of the legal entities involved in the underlying transaction, leading to the ultimate beneficial owners of the legal entities and a full and precise description of their business activities, must be provided to the Company.
DOCUMENTS REQUESTED FROM ALL PARTIES OF AN ESCROW AGREEMENT
- Notarized and Apostilled (or certified by a Cyprus Embassy) *true copies of Certificates of Incorporation.
- Notarized and Apostilled (or certified by a Cyprus Embassy) *true copies of Certificates of Directors.
- Notarized and Apostilled (or certified by a Cyprus Embassy) *true copies Certificates of Shareholders.
- Notarized and Apostilled (or certified by a Cyprus Embassy) *true copies of Certificates of Good Standing / Incumbency Letter.
- Bank reference letters from First Class Banks. (optional)
- Passport copies of the persons authorized to sign the escrow agreement for and on behalf of the said companies.In addition for the beneficial owners of the companies we will need identification documents (e.g. certified copy of passport) and proof of address for each beneficial owner (e.g. utility bill).
- Board of Director’s resolution from each of the companies appointing and authorizing the persons who will sign the escrow agreement for and on behalf of the companies.The said resolutions should also be the decision by the company to enter into the escrow transaction and the entering into the escrow agreement with the Company.
- Full and detailed description of their business activities.
- Related Business Address of the companies.
- Documents are Notarized and Apostilled (or certified by a Cyprus Embassy) only if the legal entities are not incorporated in Cyprus, otherwise require true copies through an approved Professional Intermediary.
Please note that depending on the documents submitted to us, the Bank might request additional documents.
The Company’s escrow fee and charges are agreed in advance.The fee is negotiable depending on many issues such as complexity of the agreement, the amount, the duration, the costs of producing the service and the liability/obligation