reserve fund

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Reserve Fund

An account used to save for unexpected expenses. In most cases, a reserve fund is a savings account from which one can withdraw at will. In other cases, a reserve fund may be a money market fund or may be invested in something like U.S. Treasury securities. In any case, a reserve fund is highly liquid and easy to access.

reserve fund

A physical fund with money for anticipated future needs. A reserve fund should appear on a company's or property's balance sheet as an actual bank account, earmarked for a particular use.

References in periodicals archive ?
Best international practice is to use a 25- or 30-year lifecycle cost analysis period for the reserve fund forecast, as this covers the replacement of most major mechanical, electrical, and plumbing (MEP) items, such as chillers, lifts, and fire alarm panels.
Although it is a criminal act to do so, sponsors looking to make their reserve fund obligations as small as possible base their calculations on the lower insider price tables, figures which are actually obsolete in most cases prior to the effectiveness of the plan.
The loan-loss reserve fund will cover 20 per cent of the loss once all avenues of financial recovery have been exhausted, she adds.

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