Escrow Account

A trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums.

An escrow account is

• an account established by a broker, under the provisions of license law, for the purpose of holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction, or
• a trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums.

Escrow is best known in the United States in the context of real estate(specifically in mortgages where the mortgage company establishes an escrow account to pay property tax and insurance during the term of the mortgage).