Bond for Embezzlement by Escrow Agent

February 10, 2014

Is there a type of bond that would indemnify a lender in the event an escrow agent embezzles the lender's funds held in an escrow account under the sole control of the escrow agent?

Pennsylvania Subscriber

It may be possible to obtain this type of bond, but it likely would be a manuscript form. It is similar to an employee dishonesty form but is written on a nonemployee. It likely would require in-depth underwriting, security to back it, and cost a great deal.

 

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