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how long can the funds stay in the escrow account after the funds break escrow
Sorry for the long subject.
I have two questions,
first, how long can the funds stay in the escrow account after the funds break escrow.
Second, does the five year period of investment starts from the moment that I526 is approved?
Thank you very much!
I don't understand what you mean by "after the funds break escrow", but if you mean "after the funds are deposited into escrow", it depends on each RC Program, but the money stays in the escrow usually until I-526 petition is approved.
Also, the period of investment differs for each RC Program, but usually, the period of loan starts from when the loan is made to a borrowing company.
Thank you for your patience in answering the questions. I am sorry for not having expressed the questions clearly. My question is: Usually, when I526 is approved, the fund could be removed from the escrow. But if we want to wait until there is enough fund to start the project, can we keep the money in the escrow account? If so, how long can we keep the money in the escrow fund?
Also, if I understand your answer to my second question correctly, the five-year period usually starts from when the company gets the money from the bank, right?
Thank you so much!
It depends on what the escrow agreement says. If the escrow agreement says the money has to be wired from the escrow account upon approval of I-526, then the money has to be wried. Yes, the 5 year period would start usually after the job-creating company borrower receives the money from the limited partnership, not when the limited partnership receives the money from the escrow bank; but again, it all depends on the structure of the particular eb-5 project and the offering documents.
Thank you so much for your reply. Does the limited partnership have to pay the investors anything between the time when the fund is removed from the escrow account and the time the job-creating company borrower receives the money? In another word, at what point does the limited partnership begin to pay investors a certain rate of return? I really appreciate it.
This really depends on the investment structure of each EB-5 project, and you should speak with the general partner of the limited partnership.