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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.


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


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.


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.


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 ?
Allegation escrows might unhelpfully reduce deterrence by converting what would have been unintermediated complaints into escrowed allegations.
While bilateral contracts and the law itself can create duties of conditional disclosure, information escrows are mechanisms for intermediated disclosure that necessarily entail the participation of a third-party intermediary who holds the escrowed information.
If at least the triggering number of escrowed allegations is lodged against a professor in stage 2, then the escrow agent makes the professor's identity public by formally lodging a complaint.
The direct or indirect control over escrowed funds, even without an absolute right to possess them, may constitute an economic benefit in the year of sale, thus giving rise to the constructive receipt doctrine.(11) Direct or indirect control over escrowed funds includes the seller's ability to withdraw, sell or borrow against such funds.(12) However, the constructive receipt doctrine will not apply merely because the seller can control investment of the escrow fund and subsequently receive the investment income.(13)
Restrictions that (1) are (or appear to be) based solely on the expiration of a period, (2) are self-imposed or (3) give the seller too much control over the escrowed funds, will not be substantial restrictions for purposes of avoiding the constructive receipt doctrine.
Although there is no single approach to escrowed encryption, all methods follow a few general principles.
Capstone implements the Escrowed Encryption Standard (EES) - also the Clipper standard - plus public-key cryprographic algorithms for the Digital Signature Standard and for generating and establishing session keys.
Keys are escrowed by a trusted Shell service company on behalf of the shareholders and businesses.
Before any escrowed allegations are accepted, the escrow service should establish that the employer has no claim to any of the complaints lodged with the service.
Under such a system, escrowed deposits would only be released if the set of deposits existed for which the trigger conditions were met for all the depositors in the set.
Further, the company mentioned that the proceeds will be deposited into an escrow account until some conditions under the escrow agreement are satisfied, such as, the consummation of the acquisition, however if this is not satisfied or waived or the escrow agreement is terminated, the notes will be subject to a special mandatory redemption and the escrowed funds released and applied to pay for any such redemption.
M2 EQUITYBITES-November 9, 2012-Frontier receives grant of USD29.1m in escrowed funds from West Virginia PSC(C)2012 M2 COMMUNICATIONS