reserve account is a type of credit enhancement used in some asset backed securities. The reserve account may be created by an initial deposit from the seller and may be augmented over time by the application of funds from excess servicing income. Credit is enhanced because withdrawals from the reserve account are made to reimburse investors when excess servicing is insufficient to cover charge -offs. Until needed, funds in a reserve account are invested.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). reserve account. Retrieved September 26, 2026, from http://smartdefine.org/reserve_account/definitions/1162331 |
| Chicago | Barry Goldsmith. 2010. "reserve account" http://smartdefine.org/reserve_account/definitions/1162331 (accessed September 26, 2026). |
| Harvard | Barry Goldsmith 2010, reserve account, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/reserve_account/definitions/1162331>. |
| MLA | Barry Goldsmith. "reserve account" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/reserve_account/definitions/1162331> |