Escrow

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Escrow

Property or money held by a third party until the agreed upon obligations of a contract are met.

Escrow

A certificate stating that an asset is being held by a third party on behalf of two parties to a transaction until certain conditions are filled. An escrow agreement is issued by the bank or other institution holding the asset in escrow and is useful to prove to one party or the other that the escrow has in fact taken place. See also: Escrow agent.

escrow

The holding of assets (that is, securities) by a third party.

Escrow.

When someone else holds assets of yours until the terms of a contract or an agreement are fulfilled, your assets are said to be held in escrow. The assets could be money, securities, real estate, or a deed.

The person or organization that holds the assets is the escrow agent, and the account in which they are held is an escrow account.

For example, if you make a down payment on a home, the money is held in escrow until the sale is completed or the deal falls through.

Amounts you prepay to cover property taxes and insurance premiums as part of your regular mortgage payment are also held in escrow until those bills come due and are paid. In that case, you may earn interest on the amount in the escrow account.

escrow

The process in which money and/or documents are held in trust by a disinterested third party who will consummate the instructions of the parties as expressed in their contracts.The third party is called the escrow agent.The escrow agreement usually contains a clause providing that if the parties disagree about something and are unable to resolve their differences, the escrow company will pay all money on hand into court in an action called an interpleader,name the disputing parties as defendants,disclaim any interest of its own in the property except for reimbursement for costs and expenses of bringing the interpleader action, and then let the parties battle it out in court. This effectively takes the escrow company out of the middle of any disputes and avoids liability on its part.

References in periodicals archive ?
Finally, if an escrow agreement is established by a seller after a buyer has made available the full amount of the purchase price, regardless of the terms of the escrow (i.
Pursuant to that policy 9,298,939 common shares of the Company were placed in a "Performance Escrow" which restricted insiders and significant founding shareholders from the ability to sell their shares under a "Performance" Escrow Agreement dated April 28, 1998 between the Company and Montreal Trust Company of Canada, as Trustee.
Of the shares issued pursuant to this transaction, 14,253,120 are subject to escrow agreements.
An aggregate of 10,553,141 shares issued in connection with the acquisition are subject to escrow agreements and will be releasable on the basis of a combination of time and financial performance of Helin Industries Ltd.
Existing agreements between the company and the plaintiff were upheld, including Tammera's escrow agreements with the company.
In each escrow agreement, the city has reserved the right to redeem in advance of maturity refunded bonds in addition to those currently scheduled for early redemption.
announces the conversion of a previously executed Performance Based Escrow Agreement to a Time Based Escrow Agreement pursuant to which an aggregate of 1,791,639 common shares are held in escrow with CIBC Mellon Trust Company, as the Escrow Agent.
In recognizing the contributions that have been made to the Company by John O'Bireck and Dan Amadori in their roles as directors of the Company, their respective roles in connection with the completion of the Qualifying Transaction and Dan Amadori's role as Chief Financial Officer of the Company, the Company has agreed to the termination of the Performance Based Escrow Agreement and in replacement thereof the entering into of a Time Based Escrow Agreement with the escrowed shareholders.