Common use of Establishment of the Escrow Account Clause in Contracts

Establishment of the Escrow Account. 2.1 The Issuer shall initially establish a non-interest bearing Escrow Account at the Escrow Agent. The purpose of the Escrow Account is for (a) the deposit of all subscription funds (checks or wire transfers) which are received by the Issuer from prospective purchasers of the Securities and are delivered by the Issuer to the Escrow Agent; (b) the holding of amounts of subscription funds which are collected through the banking system; and (c) the disbursement of collected funds, all as described herein. The Escrow Agent will hold all monies and other property in the Escrow Account free from any lien, claim or offset, except as set forth herein, and such monies and other property shall not become the property of the Company, nor subject to the debts thereof, unless the conditions set forth in these instructions to disbursement of such monies to the Company have been fully satisfied.