diff --git a/src/ripple/app/tx/impl/Escrow.cpp b/src/ripple/app/tx/impl/Escrow.cpp
index cd0c6c328..1051fd71b 100644
--- a/src/ripple/app/tx/impl/Escrow.cpp
+++ b/src/ripple/app/tx/impl/Escrow.cpp
@@ -93,7 +93,8 @@ after(NetClock::time_point now, std::uint32_t mark)
 TxConsequences
 EscrowCreate::makeTxConsequences(PreflightContext const& ctx)
 {
-    return TxConsequences{ctx.tx, ctx.tx[sfAmount].xrp()};
+    return TxConsequences{ctx.tx,
+        isXRP(ctx.tx[sfAmount]) ? ctx.tx[sfAmount].xrp() : beast::zero};
 }
 
 NotTEC
@@ -270,7 +271,7 @@ EscrowCreate::doApply()
 
         STAmount balance = (*sleLine)[sfBalance];
 
-        STAmount lockedBalance {sfLockedBalance};
+        STAmount lockedBalance {sfLockedBalance, amount.issue()};
         if (sleLine->isFieldPresent(sfLockedBalance))
             lockedBalance = (*sleLine)[sfLockedBalance];
 
@@ -343,10 +344,9 @@ EscrowCreate::doApply()
     else if (ctx_.view().rules().enabled(featurePaychanAndEscrowForTokens) && sleLine)
     {
         // update trustline to reflect locked up balance
-        auto const issuer = amount.getIssuer();
-        bool high = account > issuer;
+        bool high = account > amount.getIssuer();
 
-        STAmount lockedBalance;
+        STAmount lockedBalance {sfLockedBalance, amount.issue()};
 
         if (sleLine->isFieldPresent(sfLockedBalance))
             lockedBalance = (*sleLine)[sfLockedBalance];
@@ -898,7 +898,11 @@ EscrowCancel::doApply()
         }
 
         sleSrcLine->setFieldAmount(sfBalance, isLow ? finalBalance : -finalBalance);
-        sleSrcLine->setFieldAmount(sfLockedBalance, isLow ? finalLockedBalance : -finalLockedBalance); 
+
+        if (finalLockedBalance == beast::zero)
+            sleSrcLine->makeFieldAbsent(sfLockedBalance);
+        else
+            sleSrcLine->setFieldAmount(sfLockedBalance, isLow ? finalLockedBalance : -finalLockedBalance); 
 
         view.update(sleSrcLine);
     }
diff --git a/src/ripple/app/tx/impl/InvariantCheck.cpp b/src/ripple/app/tx/impl/InvariantCheck.cpp
index 73b20a0f1..9d158678a 100644
--- a/src/ripple/app/tx/impl/InvariantCheck.cpp
+++ b/src/ripple/app/tx/impl/InvariantCheck.cpp
@@ -95,11 +95,14 @@ XRPNotCreated::visitEntry(
                 drops_ -= (*before)[sfBalance].xrp().drops();
                 break;
             case ltPAYCHAN:
-                drops_ -=
-                    ((*before)[sfAmount] - (*before)[sfBalance]).xrp().drops();
+                if (isXRP((*before)[sfAmount]))
+                    drops_ -=
+                        ((*before)[sfAmount] - (*before)[sfBalance]).xrp().drops();
                 break;
             case ltESCROW:
-                drops_ -= (*before)[sfAmount].xrp().drops();
+                if (isXRP((*before)[sfAmount]))
+                    drops_ -= 
+                        (*before)[sfAmount].xrp().drops();
                 break;
             default:
                 break;
@@ -114,14 +117,14 @@ XRPNotCreated::visitEntry(
                 drops_ += (*after)[sfBalance].xrp().drops();
                 break;
             case ltPAYCHAN:
-                if (!isDelete)
-                    drops_ += ((*after)[sfAmount] - (*after)[sfBalance])
-                                  .xrp()
-                                  .drops();
+                if (!isDelete && isXRP((*after)[sfAmount]))
+                    drops_ += 
+                        ((*after)[sfAmount] - (*after)[sfBalance]).xrp().drops();
                 break;
             case ltESCROW:
-                if (!isDelete)
-                    drops_ += (*after)[sfAmount].xrp().drops();
+                if (!isDelete && isXRP((*after)[sfAmount]))
+                    drops_ += 
+                        (*after)[sfAmount].xrp().drops();
                 break;
             default:
                 break;
@@ -281,12 +284,26 @@ NoZeroEscrow::visitEntry(
 
 bool
 NoZeroEscrow::finalize(
-    STTx const&,
+    STTx const& txn,
     TER const,
     XRPAmount const,
-    ReadView const&,
+    ReadView const& rv,
     beast::Journal const& j)
 {
+    // bypass this invariant check for IOU escrows
+    if (bad_ &&
+        rv.rules().enabled(featurePaychanAndEscrowForTokens) &&
+        txn.isFieldPresent(sfTransactionType) &&
+        txn.isFieldPresent(sfAmount))
+    {
+        uint16_t tt = txn.getFieldU16(sfTransactionType);
+        if (tt == ttESCROW_CREATE || tt == ttESCROW_FINISH || tt == ttESCROW_CANCEL)
+        {
+            if (!isXRP(txn.getFieldAmount(sfAmount)))
+            return true;
+        }
+    }
+
     if (bad_)
     {
         JLOG(j.fatal()) << "Invariant failed: escrow specifies invalid amount";