Regulatory Alerts2001-05-16
Escrow CS Agent for New Bank Chartering Groups
The Pennsylvania Department of Banking clarifies that a chartered bank is authorized to serve as a non-discretionary escrow agent for new bank chartering groups under its incidental powers. To resolve concerns raised by a New Jersey client regarding existing restrictions on the bank's trust powers, the Department formally expands those powers to include this escrow role regardless of geographic location. The bank has confirmed it exercises no discretion over escrow funds and will ensure future agreements specify investment directions solely by the new chartering group.
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