escrow arrangement
Posted: Fri Mar 13, 2009 3:21 pm
can someone tell me what is an escrow arrangement?
An escrow is an aset (money or other property) held in trust by a neutral party. On fulfillment of certain agreement, the asset is released to one of the two parties.
E.g.
A: I bet $10 it will rain tomorrow.
B: I bet $10 it will not rain tomorrow.
A and B give $10 each to C.
If it rains, A will receive $20 from C.
If it does not, B will receive $20 from C.
Money held with C is known as "escrow".
