Trustee Suspense Account Law and Legal Definition

A trustee suspense account is used by a servicer in order to hold payments received from chapter 13 bankruptcy trustee according to the borrower’s chapter 13 plan providing for cure of pre-petition mortgage arrearages. Any amount received or recovered by the Trustee in respect of any sum payable by either Issuer under the Trust deed or the Notes or Coupons shall be placed in a suspense account and kept there as the trustee thinks fit.