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LSDefine

Simple English definitions for legal terms

clearing account

Read a random definition: Form S-8

A quick definition of clearing account:

A clearing account is a type of bank account that is used to temporarily hold money that will be transferred to another account before the end of a certain period of time. It's like a middleman between two accounts, making sure that the money gets to where it needs to go.

A more thorough explanation:

A clearing account is a type of bank account that is used to temporarily hold funds that will be transferred to another account before the end of an accounting period. This account is usually used for transactions that involve multiple parties or accounts.

For example, let's say that a company has two bank accounts: Account A and Account B. The company receives a payment of $1,000 from a customer, but the customer accidentally sends the payment to Account A instead of Account B. In order to transfer the funds from Account A to Account B, the company would use a clearing account to temporarily hold the $1,000 until it can be transferred to Account B.

Another example of a clearing account is when a company processes payroll. The company may use a clearing account to hold the funds that will be used to pay employees until the actual payments are made. This allows the company to ensure that all of the necessary funds are available before making the payments.

These examples illustrate how a clearing account can be used to temporarily hold funds that will be transferred to another account. This helps to ensure that transactions are processed accurately and efficiently.

clearing | clearing agent

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General

General chat about the legal profession.
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ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
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