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.
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
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.
The amount of principal and interest required to be paid on an issue of bonds.
The most common type of refunding in which the proceeds, together with interest earnings thereon, are structured to produce sufficient funds to pay the principal, interest, and other expenses on the refunded bonds.