What Is the Purpose of an Escrow Account and What

question 72

Essay

What is the purpose of an escrow account and what costs are typically included?

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Definitions:

Indorsers

Individuals or entities that sign the back of a negotiable instrument, such as a cheque or a promissory note, thereby endorsing it to another party.

Dishonor

To refuse to accept or pay a negotiable instrument when it is presented.

Drawee

The party named in a draft who is ordered to pay the money to the payee.

Holder in Due Course

is a legal term for a person who has acquired a negotiable instrument in good faith and is protected against certain defenses, ensuring the enforceability of the instrument.