Business Daily from THE HINDU group of publications
Monday, Sep 14, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Monday, Sep 14, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Mentor
-
Accountancy Web Extras - Credit Market Columns - For the Asking Escrow explained
What is an escrow account? Shailaja Tarapore, Pune It is an account with a bank which cannot be used by the accountholder for any purpose other than the one agreed in terms of the tripartite agreement entered into by the accountholder, a creditor and the bank. Suppose, a financial institution has given a large loan to a power project, it may insist on all the customers of the power company paying into the specified bank account.
The idea is the amounts deposited therein would be released by the bank only in the manner envisaged. It can be in the ratio of 1:1 between the accountholder and the financial institution or in any other ratio. This is an excellent way of securing the loan. In my view, it is even better than physical securities. S. MURLIDHARAN More Stories on : Accountancy | Credit Market | For the Asking
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|