Debt  Service Reserve Fund  

The fund into which are paid monies which are required by the trust agreement or indenture as a reserve against a temporary interruption in the receipt of the revenues or other amounts which are pledged for the payment of the bonds. A common deposit requirement for a ?debt service reserve fund? is six months or one-year?s debt service on the bonds. The ?debt service reserve fund? may be initially funded out of bond proceeds, over a period of time from revenues, or by a combination of the above.