The First National Bank Trust Department would serve as a third party custodian of assets for clients entering a contract with another party. The asset's title is kept in safekeeping until the terms of the contract are satisfied. To provide accurate recordkeeping, payments may be deposited to the escrow account. As agent, we would then release the funds to the seller. If default were to occur, both parties would be notified and the matter would be resolved as outlined in the Escrow Agreement. An example of when this type of account is beneficial is a private loan arrangement for a mortgage. Buyers may not qualify for a traditional mortgage, but the sellers would like to make a private arrangement between the two parties while protecting both sides interest.
- Not Bank Deposits
- Not Insured or Guaranteed by any Bank
- Not insured by any federal government agency
- Not FDIC Insured
- Involves Investment Risk, Including the Loss of Principal