# FBO Account

> FBO Account means a non-interest-bearing, segregated account held by [organization], untouchable by its creditors

**Term:** FBO Account  
**Last updated:** 2026-07-29

## Definition

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.

## Context

### Relevant circumstances

- Setting up escrow accounts
- Structuring financial services or operations
- Forming trusts

### Relevant sectors

- Financial Services
- Banking
- Real Estate

## Relevant contract types

- [Loan Agreement](https://www.genieai.co/en-us/template-type/loan-agreement)
- [Trust Agreement](https://www.genieai.co/en-us/template-type/trust-agreement)
- [Service Agreement](https://www.genieai.co/en-us/template-type/service-agreement)

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