Impound Definition

To impound an asset means to seize or secure the asset in such a way that the owner no longer has full use of it. For example, a drunk driver’s vehicle might be impounded by the police-the person still owns the car but cannot use it for diving. It is common for most mortgages to bear associated impound fees that are assessed on a periodic basis-usually monthly-and impounded during a one year period so that annual taxes and insurance premiums may be paid from a guaranteed source.