7 CFR § 1789.167 - Terms and conditions of escrow agreement.

---
identifier: "/us/cfr/t7/s1789.167"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1789.167 - Terms and conditions of escrow agreement."
title_number: 7
title_name: "Agriculture"
section_number: "1789.167"
section_name: "Terms and conditions of escrow agreement."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1789"
part_name: "USE OF CONSULTANTS FUNDED BY BORROWERS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 901-950b; Pub. L. 103-354, 108 Stat. 3178 (7 U.S.C. 6941 )."
regulatory_source: "61 FR 48606, Sept. 16, 1996, unless otherwise noted."
cfr_part: "1789"
---


# 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.