Can someone help me understand escrow bond addition? For example if a see an invoice from Aon Risk services posted to prepaid legal account what is that for?
An escrow bond is a type of surety bond which is purchased to insure that a party to a contract complies with the terms of the contract.
Example: you have signed a contract for the purchase of an exercise club. Your deal won't close for 30 days but you are entitled to prepayments made by customers. Some customers pay 3 months in advance in order to receive a discount, and others pay 1 month in advance. As the buyer, you will be entitled to a large portion of those ...
The solution explains the concept of an escrow bond and speculates about the purposes of it as part of a law firm. There are also several well-explained situations where an escrow bond would be appropriately used.