Credibility in business
Fiduciary Accounts strengthen the security of business as a solution supporting transactions between Clients of the Bank and their customers. A Fiduciary Account may only be used to keep funds entrusted to its holder by a third party under a separate agreement.
In accordance with the Banking Law of 29 August 1997, funds deposited in a Fiduciary Account:
- cannot be seized in the course of debt enforcement proceedings against the account holder
- are not part of the bankruptcy estate if the account holder is declared bankrupt
The most important features of the product
Fiduciary Account – advantages:
- It secures the funds deposited by the recipient and ensures they will be used by the supplier in accordance with their contract.
- It secures the contract between the recipient and the supplier by depositing the appropriate amount, being the payment for the transaction, in the Fiduciary Account.
- The transaction is settled as agreed between the parties and the Bank is the executor of the agreement.
- The bilateral agreement is signed with the Bank on the basis of the fiduciary agreement between the parties to the transaction.
Fiduciary Account is recommended when:
- we want to reduce the risk connected with a high-risk transaction
- the funds allocated to a transaction should be subject to stringent control and be used as agreed by the parties
- the contract is to be signed between parties which have not cooperated with each other and, as a result, may only offer limited trust
- safeguards the interest of each of the parties to a transaction
- confirms deposited funds and prevents the parties from using them in violation of the Fiduciary Account agreement
- drafts and modifies the agreement as required by a given transaction
- ensures support provided by an experienced team dedicated exclusively to Fiduciary Account transactions
Funds in Fiduciary Accounts bear interest at the rate negotiated with Clients on a case by case basis. Fees for Fiduciary Accounts depend on the complexity of a given account and are negotiated with Clients on a case by case basis.
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