What Is the Meaning of Impounding?

Impounding is a legal term with several different, but related, meanings. The legal definitions of "impounding" all stem from the word "pound," meaning a place of holding or confinement (from the same root word as "pen"). Most of these legal definitions pertain to one entity holding on to the money or property of another person, under governmental or contractual authority, until the rightful owner appears to redeem his property.

Dog Pound

Stray Animals Go to a Pound for Adoption

Residents of ancient England and colonial America allowed cattle and swine to run at large. Sheriffs would impound stray livestock by rounding them into a pen and holding them until the owners appeared and paid a sum to compensate for damage done and the sheriff's services. Today, stray dogs and cats are still taken to a pound and held until reclaimed, adopted or destroyed. In this sense, "impounding" means catching a stray animal and placing it in a pound.

Impound Yard

Towed Cars are Held in an Impound Yard

When police tow a car, it is taken to an impound yard. Impounding a vehicle means that police hold the vehicle until the owner pays any outstanding fines, tickets and towing fees. In the case of an ongoing criminal investigation, police may continue to impound the vehicle until the case has reached its conclusion. Here, "impounding" means securely holding property until certain conditions are met for its release.

Political Impoundment of Funds

Presidents Impound Funds When They Refuse to Spend

In the political arena, "impounding" describes circumstances where the executive--president or governor--declines to release or spend money the legislature has directed be expended. The executive branch of government is charged with carrying out laws set by the legislature, including budgets. When the chief executive declines to expend funds, the flow of money is held back from reaching its intended recipients. Like water behind a dam, the funds are said to be "impounded."

Constitutionality of Political Impounding

U.S.Supreme Court Ruled Presidential Impoundment Unconstitutional

In the United States, a grave constitutional conflict arose between a president and Congress regarding budgetary impoundment. This dispute reached its nadir when President Richard Nixon declined to expend money appropriated by Congress on the grounds of fiscal responsibility. In a series of cases in the 1970s, the U.S. Supreme Court ruled the President did not have discretionary authority to withhold legislatively authorized funds. Congress has since adopted laws clarifying that the president must report back any hesitation in carrying out congressional budget directives.

Impounding Disputed Funds

In United States v. Lousiana, 446 U.S. 253 (1980), the Supreme Court ruled that the federal treasury need not pay interest to Louisiana on tens of millions of dollars it had received from oil and gas leases on submerged lands. By agreement, the federal government was "impounding" these funds until courts determined who owned these lands. The court stated, "The word 'impound,' in its application to funds, means to take or retain in "the custody of the law."

Impounding Water

Building a dam constitutes "impounding" water, causing it to collect in quantities or locations where it would not have done so naturally. This definition of "impounding" also has important legal consequences: The British case of Rylands v. Fletcher (1868) established that when a dam collapses, or when any hazard which a person has collected on his land breaks loose and does harm, the owner is strictly liable for all damage that it causes.

References

• United States v. Lousiana 446 U.S. 253 (1980)
• Miriram Webster's Online Dictionary
• Impoundment of Appropriated Funds, from Justica.us

Resources

• Blackstone's Commentaries on the Laws of England