Define: FBO Account
An FBO account, meaning
Legal accuracy standard set & glossary spot-checked by Imad Mohammed Nazar , Skadden-trained M&A lawyer, Legal Engineer at GenieAI
For the Benefit Of account, is a segregated, non-interest-bearing account held by an organization for the benefit of another party. In a contract, the term identifies where client or third-party funds are deposited so they remain separate from the holder's own operating funds and are protected from that holder's creditors if it becomes insolvent.
Relevant Circumstances
- Setting up escrow accounts
- Structuring financial services or operations
- Forming trusts