Escrow Agreement Form printable pdf download

ESCROW AGREEMENT

Contracts in excess of $100,000.00

This Escrow Agreement is made this ___________ day of ___________________________, _____________ between

___________________________________________ (the Owner),

___________________________________________ (the Contractor),

___________________________________________ (the Escrow Agent),

Concurrently herewith, the Owner and the Contractor have entered into a Construction Contract which is in excess of

$100,000.00 dated _____________________________________ covering the ______________________ which is

by this reference incorporated herein. Pursuant to the provisions 1C 5-16-5.5, the parties agree as follows:

To the extent that the Owner retains funds out of payments applied for by the Contract under the provisions of

the construction contract providing for payments based on the value of the work in place and materials stored,

the Owner shall place the funds so retained in an escrow account(s). The Escrow Agreement shall have no

application to payments withheld by the Owner pursuant to provisions of the Construction Contract or

otherwise, which are intended to protect the Owner from loss on account of: defective work not remedied;

claims filed on reasonable doubt that the contract can be completed for the balance then unpaid; damage to

another Contractor; failure or refusal of the Contractor to prosecute the work in strict compliance with the

applicable progress schedules; any similar provisions; or for any other reason described in the general conditions

or other contract provisions between the Owner and Contractor. Additionally, this Escrow Agreement shall not

be construed as a waiver of Owner’s rights to said deposited funds as security of payment for damages which

might become due Owner from Contractor under the terms of said Construction Contract.

The Escrow Agent shall promptly invest all escrowed principal in the trust department master savings account, or

such other account as shall be selected by the Escrow Agent in its discretion.

The interest earned on funds in the account shall accrue for the benefit of the Contractor.

The income from and earnings on and all gains derived from the investment and reinvestment of the funds

(escrow income) shall be held in the escrow account(s).

The Escrow Agent may co-mingle the escrow funds with other funds or invested construction funds held by it

pursuant to other escrow agreements or trust instruments to which Owner or Contractor are parties. To

expedite the handling of the investments and re-investments (other than bearer instruments), to be registered in

its own name, or in the name of its nominee or nominees, or in such form that title may pass by delivery.

The Escrow Agent shall hold all of the escrow funds and shall release the principal and income thereof only upon

the execution and delivery to it of an escrow release executed by the Owner and by the Contractor specifying

the portion or portions of the principal and income of the escrow funds to be released and the person or

persons to whom such portions are to be released. Such release of escrow funds shall be no more than thirty

(30) days from date of receipt by the Escrow Agent of the release executed by the Owner and Contractor.

Escrow Agreement Form