Escrow Account
From Open Risk Manual
Revision as of 14:48, 13 February 2020 by Wiki admin (talk | contribs)
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.
