Legal Definitions - impound

Definition: Impound refers to the act of taking custody of personal property by the court or police in criminal law. This can include items such as automobiles or buildings. The property may be returned to the owner at the end of the proceeding or it may be forfeited to the state, especially in cases involving illegal drugs.

Impound can also refer to the collection of funds from a person who owes a debt secured by property. These funds are collected in addition to installment payments and deposited in a separate account to pay property taxes and insurance. This helps to protect the lender or seller against the borrower's failure to maintain insurance coverage or pay tax bills that constitute a lien on the property.

Examples:

• When a person is arrested for driving under the influence, their car may be impounded by the police until the case is resolved.
• If a person is found to be in possession of illegal drugs, any property used to facilitate the crime, such as a house or car, may be impounded and forfeited to the state.
• When a person takes out a mortgage to buy a house, the lender may require them to impound funds for property taxes and insurance in addition to their monthly mortgage payments.

The examples illustrate how impound can be used in different contexts. In criminal law, impounding property can be used as a way to prevent further criminal activity or to ensure that the defendant does not dispose of evidence. In the context of mortgages, impounding funds helps to protect the lender's investment in the property by ensuring that taxes and insurance are paid on time.