Graco Robotics contracted with a bank to hold escrow funds for construction work at a military depot. The bank failed to preserve the funds even though payment conditions hadn't been met yet. The court ruled that the bank had a separate duty to keep the money safe, independent of whether it had to pay it out. This means escrow agents can't use unmet conditions as an excuse to lose or mishandle your money.
Escrow agents have a duty to preserve funds that exists separately from their duty to pay out funds—don't assume unmet conditions excuse poor money handling
If an escrow agreement requires funds to be held, the bank must keep them safe and intact regardless of whether payment conditions have been satisfied
Document all escrow agreements in writing and specify the bank's preservation obligations explicitly to strengthen your claim if funds go missing