Impound Legal Meaning and Definition

Here is a simplified definition of the legal term Impound.

Impound (verb)

  1. To set aside a portion of a borrower's monthly loan payments to cover property taxes and insurance. This provides reassurance to the lender that these expenses will be paid even if the borrower defaults on the loan.
  2. The legal seizure and holding of a property by an authority, such as the police or court, usually as a result of a law violation or criminal trial. This can include assets like homes, cars, or bank accounts.