Bond Reserve
/ˈbɒnd rɪˌzɜrv/
Definitions
- (n.) A fund set aside from bond proceeds or repayments to cover specific future obligations, such as debt service or claims.
The issuer maintained a bond reserve to ensure timely interest payments to bondholders.
Forms
- bond reserve
- bond reserves
Related terms
See also
Commentary
Bond reserves are often stipulated in bond indentures and help enhance creditworthiness by assuring payment security.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.