Property or money held by a third party until the agreed upon obligations of a contract are met. Bloomberg Financial Dictionary
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1. when money or Securities related to a business deal or disagreement between two people or organizations are kept by a third party while the deal is completed or the disagreement is settled:
• The company stated that most of the proceeds from the sale will be held in escrow for future payments to creditors.
2. when documents, software etc are kept by a third party to make sure that someone performs their part of the agreement
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Money, property or financial instruments put into the care of a third party for delivery only when certain specified conditions are met. Such money is held in an Escrow account.
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escrow UK US /ˈeskrəʊ/ US /-kroʊ/ noun [U]
► LAW, PROPERTY an agreement between two people or organizations in which money or property is kept by a third person or organization until a particular condition is met: »
The money was placed in escrow.
»Current rules require homeowners to collect the grants in installments from an escrow account.
Financial and business terms. 2012.