Impound Account Law and Legal Definition
An impound account refers to the accumulation of funds collected monthly from a mortgagor or trustee. Such accumulated funds are used for paying taxes, insurance, or other periodic debts that exist against a real property. It minimizes the possibility of a lapse in tax or insurance payments, which will potentially reduce the value of the mortgaged property. An impound account is also called an escrow, escrow account, or reserve account.
