An individual, represented by a New York law firm, was a defendant in a civil litigation. The defendant was required to place funds in escrow that would ultimately be used for settlement of the lawsuit.
As part of the settlement, the New York Attorney General’s office specified certain requirements for the escrow account. First, the escrow account had to be established with a large, stable financial institution located in the state of New York. Additionally, the escrow funds were to be held in an interest-bearing account. Preservation of principal was another condition stipulated by the Attorney General. It was critical for the state government to demonstrate its ability to handle the recovery of the claimants’ funds prudently. As a result, the safety and soundness of the depository, and any misstep in this high-profile case, would be widely scrutinized.
As a first step to reaching a settlement, the defendant sold a substantial portion of his personal art collection. The proceeds from the sale of these assets partially funded the escrow account, which was targeted to reimburse the defrauded claimants.
BNY Mellon Wealth Management’s escrow group was uniquely qualified to address a number of aspects relating to the terms of the escrow agreement. BNY Mellon’s very high debt ratings1 from both Moody’s and Standard & Poor’s, its ability to offer escrow services in the state of New York, and the depth and range of its investment capabilities provided assurance to the Attorney General that all requirements of the escrow agreement would be met.
BNY Mellon Wealth Management’s escrow group was able to demonstrate its strength and financial soundness to the Attorney General’s office, as well as its comprehensive escrow capabilities. As a result of placing the funds in escrow with BNY Mellon, the Attorney General’s office showed progress in retrieving and earmarking a portion of the recovery funds for the benefit of the claimants. Finally, the sale of the personal assets and placement of the proceeds into escrow was necessary to proceed with the settlement of the case.
BNY Mellon Wealth Management’s escrow services offer reliability, value and convenience. We are committed to providing you and your clients with the prompt service and turnaround we know are so critical to your success.
• Experience with various forms of escrow agreements
o Settlements from class actions, divorce and other court-ordered proceedings
o Corporate mergers and acquisitions
o Qualified 1031 like-kind escrow accounts
• Personal service and expertise
o Escrow specialists liaison between parties to expedite the creation of the agreement
o Each specialist acts as single point of contact to manage the agreement on an ongoing basis
• Quick turnaround of agreements
• Proactive participation throughout the lifecycle of the agreement
o Escrow agreement review and account setup
o Account maintenance and recordkeeping
o Tax reporting
o Distribution and release of assets
o Final closing
• Customized deposit capabilities
o Designed to meet the needs of law firms and individual attorneys acting as escrow agent
• Financial strength and stability
o BNY Mellon is consistently ranked among the top financial firms with strong external credit ratings1
BNY Mellon Wealth Management works directly with attorneys and other advisors, delivering expert escrow capabilities to clients. Acting as liaison between parties, our specialists act as a single point of contact throughout the execution of the agreement. We provide reliability, cost efficiency and expedience, with a commitment to exceptional service, to ensure our clients are well served, well prepared and well protected.
Escrow services are available nationwide through our network of local offices. Visit our Escrow Services page for more information on BNY Mellon Wealth Management's escrow capabilities.
1For credit rating information on BNY Mellon, N.A., visit investor relations page.
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