Difference between revisions of "Escrow Account"

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'''Escrow Account'''. It is an account held in a financial institution or other trusted third party, outside the location of a debtor, through which a portion of its revenues is retained to cover future debt-servicing payments.The beneficiaries of the escrow accounts are the creditors who can obtain in this way extra security for their loans and priority in debt servicing.
 
'''Escrow Account'''. It is an account held in a financial institution or other trusted third party, outside the location of a debtor, through which a portion of its revenues is retained to cover future debt-servicing payments.The beneficiaries of the escrow accounts are the creditors who can obtain in this way extra security for their loans and priority in debt servicing.
  
[[Category:Supply Chain Finance]]
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[[Category:Contracts]]

Latest revision as of 13:48, 13 February 2020

Definition

Escrow Account. It is an account held in a financial institution or other trusted third party, outside the location of a debtor, through which a portion of its revenues is retained to cover future debt-servicing payments.The beneficiaries of the escrow accounts are the creditors who can obtain in this way extra security for their loans and priority in debt servicing.

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