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    Can project financers deposit loans directly into an escrow account?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    Yes, Article (13) requires that if a developer mortgages a project to obtain a loan, the finance institution must deposit the loan amount directly into the project's Escrow Account. This ensures that all capital intended for construction�whether from buyers or banks�is managed under the same regulatory safeguards. By centralising all project funding in the escrow system, the law prevents the misappropriation of loans and ensures that construction progress remains the priority for all available funds.

    Related Topics:

    Project Loans
    Developer Finance
    Escrow Management
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