CenterState Bank’s Escrow Services product is designed to provide De Novo Organizing Groups a safe and efficient way to handle their Subscription Funds Management. This product includes:
Accept and record subscription agreements with the corresponding payment. This information will be used by CenterState Bank to maintain a list of all investors in an Escrow Report. Each investor is FDIC insured up to $250,000.00. Escrow accounts are established upon receipt of a signed CenterState Bank Escrow Agreement. Specific guidelines and procedures are documented in the CenterState Bank Escrow Procedures document.
Provide a weekly Escrow Report to the “Organizing Group” via secure email. This report will include all deposit activity from the prior business week and will include interest, loans credited, and investment activity. Daily, weekly, and monthly account statements are provided via Converge, CenterState’s online banking platform.
Checks received by 2 PM (ET) are credited the following business day. Any check that does not clear normal banking channels and is returned by the drawer’s bank to CenterState Bank is debited from “Organizing Group’s” account and returned via US Postal Mail. Checks will be refunded upon receipt of a Refund Request Form. A check will be refunded to the investor within five business days and will be sent via US Postal Mail to the address listed on the refund request form.
Interest may be paid to refunded investors as specified in “Organizing Group’s” Private Placement Memorandum. Any investors who are paid interest in excess of $10.00 are issued a 1099 at the end of the calendar year for tax reporting purposes.
Sweep collected funds to invest in Federal Funds at the end of each business day. Interest on invested Federal Funds is credited to the account, along with the swept amount on the following business day. Funds will be released when “Organizing Group” has met all conditions as outlined in their Private Placement Memorandum. “Organizing Group” will be required to provide certification that all conditions have been met from the President or Board of Directors or their regulator.
Once certification has been provided, CenterState Bank will transfer the funds from the escrow account to the destination specified in writing by “Organizing Group”. Funds are not transferred until all subscription agreements have been received.
For more information about our Escrow services offering, please contact your CenterState Bank Business Development Officer.