The SCCA Fundholding Procedures enable parties to deposit their funds in escrow with SCCA until the time comes that such funds shall be released in accordance with the payout mechanism agreed to by the parties.
This typically includes the holding of “security for costs” or the “sum in dispute” on account with an accredited bank chosen by SCCA. Unless expressly agreed otherwise in a special escrow agreement signed by the parties and SCCA, the funds shall be held to the order of the Arbitral Tribunal or the Mediator and SCCA will not transfer any funds without the prior written directions of the Arbitral Tribunal, the Mediator, or the parties as the case may be.
This service is available to both SCCA administered as well as non-SCCA-administered cases. Upon request, SCCA shall provide the parties, the Arbitral Tribunal, or the Mediator with a financial statement showing the balance held on the dedicated bank account.
The SCCA Service Fee is due and payable at the time of the submission of the Request for Fund Management Services. In exceptional circumstances where the parties have agreed upon additional services not reasonably contemplated at the time of submitting the Request, SCCA may fix a higher amount in SCCA Service Fees.
All costs and expenses incurred by SCCA for collecting, holding, and disbursing the funds are the parties’ responsibility and will be charged to the parties. Unless otherwise directed, such costs and expenses shall be borne by the parties in equal shares.
