---
kind: "section"
citation: "7 C.F.R. § 1789.167"
title: "7"
number: "1789.167"
heading: "Terms and conditions of escrow agreement."
url: "https://uscodex.org/cfr/7/1789.167"
---

# §1789.167. Terms and conditions of escrow agreement.


Escrow Agreements between and among the Borrower, Consultant and Third-party Commercial Institution shall be in form and substance satisfactory to RUS and provide for, among other matters, the following:

- (a) Specific reference by number to the applicable contract for services;
- (b) Specific reference by number to the applicable Task Order;
- (c) Specific reference by number to the Escrow Account into which funds are to be deposited;
- (d) Invoices to specifically identify the applicable contract and Task Order(s);
- (e) Funds to be held in the Escrow Account by the escrow agent until paid to the Consultant pursuant to the government's authorization;
- (f) The Escrow Account to be closed and all remaining funds remitted to the Borrower after payment of the Final Invoice, unless otherwise directed by the government;
- (g) The government, the Consultant and the Borrower to have the right to be informed, in a timely manner and in such form as they may reasonably request, as to the status of and activity in the Escrow Account; and
- (h) The Escrow Agreement shall not be effective unless and until approved in writing by RUS.

## Notes

### Authority

Authority: 7 U.S.C. 901-950b; Pub. L. 103-354, 108 Stat. 3178 (7 U.S.C. 6941 et seq. ).

### Source

Source: 61 FR 48606, Sept. 16, 1996, unless otherwise noted.