This chart defines the legal and operational hierarchy, clarifying the relationship between the central treasury and project-level entities.
Step 1 – HSC Bank Grantors
Subsidiary business contributions – Source of Funds
Private, non-consumer funds, corporate capital contributions for contractual project revenues
- Source: Known-related-party entities via P2P, H2H, Domestic Wire or ACH Credit.
- Verification: All inbound funds undergo HSC’s internal KYC/AML screening before reaching the bank.
Step 2 – HSC Treasury Bank Portal
Source of Proof & Liquidity
- Trustee
- Underwriter
- Custody & Escrow
- Clearing Agent
- Fund Management.
Step 3 – Bank Treasury Service
Virtual Account Management the sub-ledger. “Manual or Automated” past-through to DDA
When a community development project requires funding, HSC triggers an internal corporate-to-bank transfer. Capital One offers Liquidity Management Solutions through DevExchange developer portal.
Mechanism: (The “Push-Only” Movement) HSC issues JSON API/H2H instructions to move funds from its Corporate Treasury or Bank Treasury
Step 4 – HSC Family Office Escrow Master Account
Designated DDA for Subsidiary business contractors
Account to a Subsidiary Project DDA or Vendor DDA held within the same bank.
“Closed Loop” Because the sender and receiver share the Same Bank the funds never leave the bank’s ecosystem.
This eliminates “Payment Rail” risk (ACH returns, Fedwire delays).
Step 5 – Family Trust Account
Designated DDA for Subsidiary business contractors
Account to a Subsidiary Project DDA or Vendor DDA held within the same bank.
“Closed Loop” Because the sender and receiver share the Same Bank the funds never leave the bank’s ecosystem.
This eliminates “Payment Rail” risk (ACH returns, Fedwire delays).
Concentration & Ledgering (The Central Treasury)
Upon arrival at the Master HSC DDA, funds are immediately reconciled within HSC’s internal ERP.
- Ledger Attribution: Funds are mapped 1:1 to Virtual Account Numbers (VANs) assigned to specific subsidiaries or projects.
- Accounting: The bank’s core system sees one consolidated balance (benefiting the bank’s Liquidity Coverage Ratio LCR)
- API-driven sub-ledger providing granular attribution for each subsidiary
Disbursement & Controls
External payments (e.g., to contractors or for equipment) are executed via Push-Only ACH or Wire from
Project DDA.
- Dual Authorization: No disbursement occurs without an OAuth “Maker-Checker” approval with HSC Treasury and Bank.
- Finality: All external transactions are settled against pre-funded balances, ensuring the bank never carries credit exposure.
- Digital Trust Certificate – Funds Issued by a trusted Certificate Authority (CA), Private and Public Key API Infrastructure (PKI), TLS/SSL, and digital signatures
Transparency & Audit
- Real-Time Reconciliation: Daily automated feeds ensure the bank’s general ledger and HSC’s sub-ledger are perfectly synchronized.
- Regulatory Data: Every transaction carries ISO 20022 structured data, including Purpose Codes and Ultimate Debtor identification, for seamless BSA/AML monitoring by the bank.
For More Info Contact:
Hill Scott
Founder and Chief Fiduciary Officer, CFO
Helping to define investment goals and work with financial professionals to create alternative investment strategies.
hilleryscott@hillscott.com
Tia Lanae Scott
Chief Operations Officer, COO
Helping to define operational goals and work with family clients to create alternative investment strategies.
tialanae@hillscott.com
