While the paying agent agreement is generally between the buyer and the paying agent, the escrow relationship is a three-way relationship between the buyer, the shareholder representative and the bank. Banks generally do not share information between accounts, particularly when the account holders are not identical. Because of this, escrow agents often need to re-collect payment instructions from each shareholder and also independently collect and review tax forms. If the escrow agent did not serve as the exchange agent, it may not know whether all shareholders have submitted their share certificates, executed the Letters of Transmittal (LOTs) and/or fully completed the exchange process. SRS Acquiom works to avoid this, as having to re-verify and re-collect this information can delay payments.
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Posted in: Clients: General Information