This excerpt taken from the EBAY 10-Q filed Apr 25, 2007.
Note 5 Balance Sheet Component
Customer accounts for certain PayPal foreign subsidiaries include liquid assets set aside for certain customer liabilities as required in conjunction with regulations in those jurisdictions. The customer accounts represent claims on those foreign subsidiaries and may be invested only in specified types of liquid assets. These assets are included
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
on our balance sheet as current assets with an offsetting current liability in funds payable and amounts due to customers. Customer funds held by PayPal as an agent or custodian, for the benefit of its customers, are not reflected in our condensed consolidated balance sheet.