Many people desirous of making investment in a program of EB-5 Investment have queries regarding the safety of their investment till they get an approval of I-526 application and welcomed into the EB-5 program. To provide security of their money, till the time of approval, the investors’ funds are kept in an “Escrow Account”.
An Escrow Bank Account is an authorized, interest-generating account with a Chartered Bank. Commonly Escrow Account are made use of in the real estate sell and purchase, businesses and individual property and the governance of these accounts are more strict that any other form of bank accounts. The rules vary for every type of business.
The Escrow Account under the EB-5 has various terms and the non fulfilment has resulted in the rejection of several types of arrangement by AAO. The rejections were made when the funds of the account were released into an Escrow Account, limited partnership, trust fund, trust agreement or other vehicle.
The original deposit from the person/s investing in is kept with an interest-bearing EB-5 Escrow Account. Whilst the account is brought into existence, the assets are the property of the investor. There is an agreement between the investor and the bank or lawyer that needs the moving of the assets from the Escrow Account to the EB-5 Project’s bank account after the Investor gets an approval from the USCIS, for the EB-5 application.
The time for which the money will remain with the account depends upon the type of agreement. After the investor gets an immigrant visa or Green Card, the Escrow must clearly discharge the funds into the working of the job creation enterprises or to the United States business accounts for employment generation purposes.
The need to have an Escrow Account rose on the account of increasing activities of fraud. A few cases were put under investigation by the authorities where it was found that the families had made complete payments or partial payments to unofficial persons/companies. So, to protect the investors from such losses, this account has been created.
Owing to such difficulty involved in the understanding of such program, it is advisable to take the help of expert professional in the field of immigration. One such old reliable name is Abhinav where you are sure to get a proper understanding of the EB-5 program and the related accounts. These renowned consultants have their offices across many major cities of India.
