Escrow agreements ready for first review
Overview
Two new contracts will be presented for review at the next Documentary Committee meeting on 6 June 2017 in Rome.
Work continued last week on the escrow agreements for:
- depositing money in a sale and purchase transaction
- depositing money as security for a claim in dispute
The agreement for depositing money when purchasing a ship gives the parties the necessary framework to achieve this at the same time as protecting the person or entity holding the money for them. As the deposit holder is offering to hold the money as a service, it is important that this person is sufficiently protected in the various stages of the process.
In the contract for depositing security for a claim, provision has been made for clearly identifying the dispute which the deposited money relates to. This is important as the same parties may have several ongoing disputes between themselves. The security can be released in two scenarios – either upon settlement of the parties or upon a final and unappealable award or judgment.
It is hoped that the two new documents will be ready for adoption in November 2017.
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Posted:
21 February 2017
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