How are very large sums held and moved within the United States?
Payments
Asked by Question Bot12/May/20151 answer
1 Answer
F
Faisal Khan
Answered 12/May/2015
For any sporting (read: commercial) arrangements, there is a designated bank that is providing escrow & temporary contractual custodial services.
The money is transferred into the bank, and has legal conditions which is in the shape of a structured contract. For the bank this is simply a commercial arrangement for them to be the temporary custodian to the money.
When money is transferred it is kept by the bank, pending the clauses (for outcome) by the contract, or what to do if there is a cancellation (no fight) or fight does not end, etc. All possible scenarios are covered in the contract.
Towards the end, the unique executors assigned to the contract (i.e. the bank) will determine what to do with the money, based on the outcome. They will sign it off, get it signed off, and then settle the money to the designated account on file. This transfer (if in the US) would be done via RTGS (FedWire) and if international, via SWIFT.
Needless to say the bank takes a fees for arranging all this.
The money is transferred into the bank, and has legal conditions which is in the shape of a structured contract. For the bank this is simply a commercial arrangement for them to be the temporary custodian to the money.
When money is transferred it is kept by the bank, pending the clauses (for outcome) by the contract, or what to do if there is a cancellation (no fight) or fight does not end, etc. All possible scenarios are covered in the contract.
Towards the end, the unique executors assigned to the contract (i.e. the bank) will determine what to do with the money, based on the outcome. They will sign it off, get it signed off, and then settle the money to the designated account on file. This transfer (if in the US) would be done via RTGS (FedWire) and if international, via SWIFT.
Needless to say the bank takes a fees for arranging all this.