GLOSSARY | BANK GUARANTEE | ID CHECKLIST | CALCULATOR
BANK GUARANTEE
AMHERST’S ACCOUNTS ARE 100% PROTECTED
We make misappropriation of exchange funds impossible. Our method preserves the exchange as well as the funds. No bond, no matter how large, will pay off in time to meet the strict time requirements of § 1031.
Replacing funds once they are lost is far less effective than creating a business model that protects funds from misappropriation in the first place.
We have NEVER commingled funds. Each exchange has always been placed in a separate bank account. This is what makes our security arrangement possible.
We have ALWAYS offered a 2-signature protection system.
There is no charge for a Bank Guarantee. You can select from a variety of banks we assess to be safe and sound.
The bank states in writing it will reimburse the client for any loss of funds incurred during an exchange with Amherst.
Here is how the Bank Guarantee works:
- We have an overall Guarantee Agreement with selected banks. In the Agreement we pledge funds held by Bank to secure the issuance the GUARANTEE to Client.
- We apply for the Guarantee when requested to do so by Client as the exchange is opened and prior to receiving funds. (Many clients prefer to work without the Guarantee, so it is elective.)
- When funds are received, Bank immediately issues a Guarantee to Client for the exact amount of funds held in the specific exchange account. The Guarantee states that the funds deposited into the Amherst exchange account are safe and will be available for the purchase of replacement property.
- Bank asks Client to sign a Facsimile Agreement so that Bank has Client’s signature(s) on file and can accept facsimile instructions from Client.
- When Client has instructed Amherst to wire funds to a purchase, Amherst sends its instruction to Bank.
- Client also sends an instruction to Bank that must match Amherst’s instruction or funds CANNOT BE MOVED. ONLY when both instructions are identical can the funds be transferred.
- If there is a partial disbursement and additional funds remain in the account the Guarantee remains in place until all funds are transferred, at which time the Guarantee is terminated.
