Reserve Fund
/ˈrɛzərv fʌnd/
Definitions
- (n.) A fund set aside by an organization to cover future liabilities, contingencies, or repairs.
The company allocated money to the reserve fund for unexpected expenses.
- (n.) In condominium or homeowners' associations, a fund accumulated to finance major repairs and replacements of common property.
The reserve fund ensured there were sufficient resources to replace the roof when needed.
Forms
- reserve funds
Related terms
Commentary
Typically requires clear terms in governing documents about funding and usage to avoid disputes.
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.