Banking Handbook for Settlement Funds

This document is a guide designed for lawyers, claims administrators, regulators, and special masters involved in settlement funds. It aims to provide a comprehensive resource to assist responsible parties in making informed banking decisions related to settlements. The handbook outlines best practices for managing settlement funds, including appointing a bank as a custodian or escrow agent, selecting banks with relevant experience, and identifying appropriate investment structures. It also discusses potential pitfalls in managing settlement funds, such as risks associated with fiduciary duties and payment fraud, and offers strategies to mitigate these risks. The document emphasizes the importance of understanding custody and escrow accounts, detailing the roles of different entities involved, and providing templates for custodian/escrow agreements. Overall, the handbook serves as a practical reference to ensure compliance with banking principles and to facilitate effective management of settlement funds.