Benefits of a collection account for film investors | David Zannoni

A Collection Account is an important tool for producers to protect their investors’ interest in an independent production’s revenues. Although the possibility to recoup an equity investment ultimately depends on the level of sales generated by domestic and international distribution, with a Collection Account, one can make sure that if there are sufficient revenues, the investor gets its correct share, on time. None of the parties of interest, like the producers, sales agent, or others, control the revenues, as this is exclusively in the hands of the neutral, third-party CAM. The benefit for the investors is that they receive transparent reporting about the project’s sales and exploitation and get paid directly by the CAM from funds received in the Collection Account, in accordance with the agreed waterfall. None of the revenues needed to recoup an investor flow through any sales agent, production company or SPV, before reaching the investor.