Escrow Account Agreement Template for Switzerland

The Escrow Account Agreement is a critical document used in transactions where funds need to be held securely by a neutral third party until specified conditions are met. This agreement type is particularly relevant in Switzerland, given the country's sophisticated banking sector and strong reputation for financial services. The document outlines the establishment of the escrow account, deposit procedures, release mechanisms, and the escrow agent's duties under Swiss law. It is commonly used in various commercial contexts, including M&A transactions, real estate deals, international trade, and complex commercial arrangements where parties seek the security of having funds held by a regulated Swiss financial institution. The agreement must comply with Swiss banking regulations, including the Federal Banking Act and anti-money laundering legislation, while providing clear mechanisms for fund management and release.

1. Parties: Identification of all parties: Escrow Agent (typically a bank or licensed institution), Depositor, and Beneficiary

2. Background: Context of the escrow arrangement and the underlying transaction it supports

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment of Escrow Agent: Formal appointment and acceptance of the escrow agent's role

5. Escrow Account Establishment: Details of the escrow account setup, including account type and designation

6. Deposits: Procedures and requirements for depositing funds into the escrow account

7. Release Conditions: Specific conditions that must be met for the release of escrow funds

8. Release Mechanics: Procedures for releasing funds, including necessary documentation and timing

9. Escrow Agent's Duties: Detailed responsibilities and obligations of the escrow agent

10. Fees and Expenses: Escrow agent's compensation and allocation of costs

11. Liability and Indemnification: Limitations of escrow agent's liability and indemnification provisions

12. Term and Termination: Duration of the agreement and termination procedures

13. Notices: Communication procedures and contact details

14. Governing Law and Jurisdiction: Specification of Swiss law application and jurisdiction

15. Miscellaneous: Standard provisions including amendments, assignments, and severability