Trust, Escrow and Investment Accounts
ESCROW AND INVESTMENT TRUST ACCOUNTS
- All Escrow and Investment Trust Accounts are non-speculative short-term bank accounts, held at one or more South African Registered Banks, earning short term market-related interest as guaranteed by such bank and referred to as an Interest Bearing Investment Trust Account.
- All amounts of money held in an Interest Bearing Investment Trust Account are guaranteed by the Legal Practitioners Indemnity Insurance Fund, who deduct monthly from such account 5% (five percent) of the interest earned thereon, as insurance premium.
- Crafford Inc. Attorneys is a FICA accountable institution and will provide IT3b certificates in respect of net interest accrued on such an Account.
- An Escrow Account is an Interest Bearing Investment Trust Account, where funds are held in trust whilst two or more parties complete a transaction. This means a trusted third party such as Crafford Inc. will secure the funds in an Interest Bearing Investment Trust Account. The funds will be disbursed to the merchant after they have fulfilled the transaction, referred to as the Escrow Agreement.
- Such Escrow Agreement can also be used for holding funds in trust whilst the parties complete a joint venture agreement involving a Merchant and a Funder, wherein capital and proceeds from any sales are paid into the Escrow Account and then distributed to the parties in accordance with the terms of such Escrow Agreement, and accounted for.
STANDARD ESCROW AGREEMENT
Fee of R 11 500.00 (incl. VAT)
INVESTMENT TRUST ACCOUNT
All funds held in an Attorneys Trust Account is guaranteed by the Fidelity Fund. All interest earned on such account is paid to the Attorneys Fidelity Fund as an insurance premium. All bank charges are covered by the Attorneys Fidelity Fund.