Thus one of the functions of the qualified intermediary is to hold the exchange funds. The exchange agreement between the investor and ADE outlines how the funds are to be held and prohibits the investor from having access, control or the benefit of the funds during the exchange period.
The IRS Regulations outline these Restrictions. At ADE, each investor’s exchange funds are held in a segregated, interest-bearing, dual authorization account. Funds cannot be moved without the investor signature- see Triple Protection Program . We work only with banks that are FDIC insured and use a qualified escrow system.