Section 5. DEPOSIT

REQUIREMENTS.

.01 In General. A participating FFI that withholds tax as required under this agreement must deposit amounts withheld within the time provided in §1.1474– 1(b)(1). See §1.1471–2(a)(5)(ii) for an optional escrow procedure if a withholding agent is unable to determine at the time of payment whether such payment is a withholdable payment. .02 Dormant Accounts . If a participating FFI receives a withholdable payment not otherwise subject to backup withholding under §31.3406(g)–1(e), or withholding under §1.1441–2(a), on behalf of a dormant account held by a recalcitrant account holder, the participating FFI may, in

lieu of depositing the tax withheld, set aside the amount withheld in escrow until the date that the account ceases to be a dormant account. See section 6.05(C) of this agreement for the reporting requirements and section 9 of this agreement for the requirements of an FFI withholding statement when the participating FFI applies the escrow rule for dormant accounts described in this section 5.02. Sections 1.1471–4(d)(6)(ii) and (iii) provide the rules for determining when the participating FFI must treat an account as dormant and when an account will no longer be treated as a dormant account.