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Definition - What does Impound mean?

The term impound means to collect some amount of money from a borrower (owing a debt secured by a property), other than the installment payments and use the amount collected to pay the taxes on property and other insurance amount when due. An impound is also a place where goods are stored. For instance, if your vehicle is repossessed, it will be stored at an impound lot.

Justipedia explains Impound

The main aim behind this is to protect the lender from tax or insurance amount payable to build up in case the borrower fails to make the payment.

Impound may also mean to take away assets like car or a building by the government as an evidence to be used in an ongoing court case. If your car is towed after a traffic stop, it will most likely be stored at the police impound lot.

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