Escrow

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Related to Escrow Agreement: Escrow account

Escrow

Property or money held by a third party until the agreed upon obligations of a contract are met.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

escrow

The holding of assets (that is, securities) by a third party.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
NCC Group currently protects over 9,000 business critical software applications under comprehensive escrow agreements, on the behalf of licensees worldwide.
Escrow Agent shall acknowledge in writing receipt of the Escrowed Funds upon request by Life Settlement Provider and Life Settlor and shall hold the same in a non-interest bearing trust account, and shall invest the same in the_ Fund, that Life Settlement Provider shall direct in writing in the form of Exhibit B to this Escrow Agreement. The Escrow Agent shall invest the Escrowed Funds in alternative investments in accordance with written instructions as may from time to time be provided to the Escrow Agent by Life Settlement Provider provided the Escrowed Funds remain in accounts which are insured by the Federal Deposit Insurance Corporation.
In the Home Loan case, the title insurer took the position that its fiduciary duty was limited to carrying out the terms of the real estate contract and escrow agreements, and to disclose any actual knowledge of a fraudulent scheme directed toward the lender.
In summary, we strongly recommend that you don't set up your escrow agreement with bankruptcy as the sole release condition.
All parties should feel confident in their escrow agent's ability to perform its obligations under the escrow agreement and to act in a reasonable and prudent manner with regard to the escrow arrangement.
Typically three types of agreements are relevant in reviewing your legal rights: 1) the original product license, 2) the maintenance and support agreement, and 3) the source code escrow agreement. (Source code is what programmers use to make software modifications.
For example, an escrow agreement can grant the company access to the documentation in the event of the bankruptcy of the vendor or its failure to perform its obligations.
George deposits $100,000 in an escrow agreement as security for his performance.
If Corporation A properly identifies the replacement property and Corporation B acquires and transfers it within the statutory periods, the transaction should qualify as a nonrecognition event, since the escrow agreement meets all of the (g)(6) requirements limiting Corporation A's ability to obtain the economic benefits of the funds.
The issuance of the Shares has been approved by the TSX Venture Exchange and all Shares issued pursuant to the incentive share grants are subject to a voluntary escrow agreement with 25% of the Shares being released concurrent with the issuance and 25% of the Shares being released on each following quarter.
Abu Dhabi: First Abu Dhabi Bank signed an escrow agreement with the Real Estate Regulatory Administration in Ras Al Khaimah (RERA-RAK).