Impound Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Impound, written in plain English, along with examples of how it is used.
What is Impound?
It refers to collection of the money as an installments for the repayment of the loan along with some extra funds to pay the property tax and the insurance of the property against which the borrower has borrowed the money This helps the lender meet the expenses of paying the insurance and taxes incase he/she has to sell the property on account of non payment by the borrower. It also means seizure of the property, homes, accounts, automobiles etc to be kept in legal custody as an outcome of criminal trial.
History and Meaning of Impound
Impound can refer to two distinct legal contexts. First, it can signify the practice of collecting money as installments for the repayment of a loan, including additional funds to pay the property tax and insurance related to the mortgaged property. This scheme is usually used as a way to protect lenders from the financial burden of paying taxes or often associated insurance premiums in the event of default or foreclosure. Second, impound can also mean the seizure of property as part of legal action, either as criminal evidence or as a means of securing payment of a debt or damages.
Examples of Impound
- The bank required the borrower to impound part of their mortgage payment each month to ensure payment of the property taxes and insurance.
- The impound of the defendant's vehicle was ordered by the court after his repeated driving under the influence charges.
- The government decided to impound the livestock of a rancher who grazed his cattle illegally on public land.
- A judge ruled in favor of the plaintiff and ordered the impound of the defendant's assets as a security for the damages awarded.
- A police officer can impound a vehicle that is not registered and parked on public property.
Legal Terms Similar to Impound
- Forfeiture: The government's confiscation of property that has been involved in illegal activities.
- Repossession: A lender's legal right to seize and sell a borrower's property, usually after a default on a loan.
- Sequestration: A court-ordered seizure of assets to secure payment of a debt or damages.