reserve fund

reserve fund definition - business

reserve fund

  1. Monies held under an indenture agreement by the trustee of a bond issue. For example, the trustee for a revenue bond issue maintains a reserve fund to offer lender protection against the possibility of a shortfall of revenues.
  2. See replacement reserve.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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