Escrow Account/Sinking Fund Services

These are typically employed in “bullet” structures or as Bond Sinking Funds, during which principal payments build up in a Debt Service Payment Account to fund the bullet payment to Investors. Usually implemented as a Security account held in the name of the Borrower with a co-mandated signing arrangement between the authorised representatives of the Security Trustee Agent on the one hand and the authorised representative of the Borrower on the other. The Debt Service Payment Account is subject to instructions, accepted and confirmed by the Bank, that no transaction or business of whatsoever nature will be conducted in respect of Debt Service Payment Account without at least one Panel A and one Panel B signatory. An event of default as stipulated in the Facility/Bond agreement will trigger a cession and pledge over cash held in the account to exercised by the security agent on behalf of the Investors.