Debt Service Reserve Fund
The fund established as a reserve for payment of debt service on revenue bonds in the event there is insufficient money to make a debt service payment.
bond-basics
Reasonably Required Reserve or Replacement Fund
A fund maintained to provide Security to bondholders that does not exceed the least of (i) 10% of the stated Principal amount of the Bond Issue (Issue Price if more than a de minimis amount of Original Issue Discount or Premium), (ii) the maximum annual Principal and Interest requirements of the Bonds, or (iii) 125% of the average annual Debt Service requirements of the Bonds.
See Also
Debt Service
The amount of principal and interest required to be paid on an issue of bonds.
Start with the Bond Basics
Hundreds of Terms and Concepts
Inducement Resolution
A resolution adopted by the issuer or the borrower to indicate the preliminary intention to issue the tax-exempt bonds, subject to satisfaction of certain conditions precedent which may be satisfied on or after the adoption of a bond resolution.