An account that is established by a lender or an intermediary bank to hold separate funds for the purpose of paying obligations (such as bills, taxes, insurance, etc) on behalf of a customer or borrower.
It could also refer to the assets (real estate, cash, securities, and so on) which are deposited with a third party (known as the escrow agent) to be turned back to the depositor once specific conditions of a contract or agreement are fulfilled as per agreement.
