In general terms, a funding agreement is an investment product offered by an insurance company. Escrow Shield Plus is a tailored funding agreement designed specifically for the investment of M&A escrows and could replace the need for a traditional escrow. It offers a competitive investment earnings rate called the crediting rate. The crediting rate may change under limited, defined circumstances.
The funding agreement states that the escrow funds will be placed into a separate account that contains a portfolio of diversified securities, and is guaranteed against loss by a principal guarantee by AXA Equitable, a highly rated insurance company. Guarantees are based on claims paying ability of AXA Equitable. The assets in the separate account are collateral against AXA Equitable’s obligations. Escrow Shield Plus could replace the need for a traditional bank escrow account in order to satisfy potential indemnification claims in M&A transactions.
See About AXA Equitable for information on AXA Equitable credit ratings.
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Posted in: Services: Escrow Shield Plus