Membership contract impound

Definition

Long-stay contract money a regulator can order held, with the members as its beneficiaries.

Why It Matters

Where a park sells the use of its ground under contracts running longer than a month, the money can stop being the operator's to spend. Washington registers those contracts and lets the director impound the sale proceeds, the receivables and the dues where future availability and quiet enjoyment are not otherwise assured, and impounded funds sit beyond the reach of lenders, creditors and a trustee in bankruptcy, with the contract purchasers as a class the beneficiary. Assigning or pledging anything inside an impound needs written approval, and a change of owner is itself a reportable event.