Escrow Fund

The trust account established in the Escrow Deposit Agreement that holds cash, investments, usually obligations of the federal government or, sometimes, federal agencies, or both, all of which are pledged to the payment of the Debt Service of the Refunded Bonds.

See Also


Termination of the rights and interests of the bondholders and release of liens on the security upon final payment of debt service or deposit of guaranteed payment in an irrevocable escrow fund.


A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.

Escrow Trustee (Agent)

The custodian of funds held in the escrow fund and responsible for holding and managing the escrow fund, including any investments in the escrow fund, up to and including the date when the refunded bonds mature or redeemed, whichever is earlier.

Hudson Yards Rail Yards

Start with the Bond Basics

Gross Proceeds

Includes sale proceeds, investment proceeds, transferred proceeds (which, together with sale and investment proceeds equal the “proceeds” of the bonds) and replacement proceeds, all of which are defined in the Code.