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Custodian: Difference between revisions
→Escrow agents and account control agreements=
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**Custody rules would generally exclude the custodian’s liability for losses in this case provided it had diligently selected and monitored the subcustodian in question. | **Custody rules would generally exclude the custodian’s liability for losses in this case provided it had diligently selected and monitored the subcustodian in question. | ||
==[[Escrow agent]]s and [[account control agreement]]s | ==[[Escrow agent]]s and [[account control agreement]]s== | ||
Custodians sometimes act to hold pledged collateral away from its owner, but outside the bankruptcy estate of the pledgee, under an [[account control agreement]]. This can put the custodian in an invidious position, because when the treacle hits the fan, everyone will be shouting at it at once, and it won't know what to do. That will mean it won't do anything. Unless you are prepared to give an [[indemnity]]. | Custodians sometimes act to hold pledged collateral away from its owner, but outside the bankruptcy estate of the pledgee, under an [[account control agreement]]. This can put the custodian in an invidious position, because when the treacle hits the fan, everyone will be shouting at it at once, and it won't know what to do. That will mean it won't do anything. Unless you are prepared to give an [[indemnity]]. | ||