Construction Loan/Holdback Escrows are usually provided by a lending institution. There are three general formats:

1. The Lender will disburse periodic draws to the contractor and obtain lien waivers and/or indemnities as required by FINS and title agent’s underwriter.

2. The Lender will forward periodic draw information to FINS and FINS will obtain necessary lien waivers and/or indemnities as required by title agent’s underwriter.

3. The Lender will forward funds to FINS, FINS will obtain necessary lien waivers and/or indemnities and FINS will disburse the funds to the provider of construction goods or services.

There are occasions where the lender is a non-financial institution.