Holding Deposit in interest bearing trust account

 

If the deposit is to be held in an interest bearing trust account we need the specific written instructions as to what happens to the interest. This can be done by a clause in the agreement or a variation afterwards, as follows:

 

The Parties authorise the agency herein to hold the deposit in an interest bearing trust account and forthwith upon the deposit being disbursed to pay the interest to the party entitled to the deposit, or pro rata.

 

This should only need to happen where the deposit is for a large amount and/or might be held over a relatively long period.
 

 

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