Definitions for "DEBT SERVICE RESERVE FUND"
See:  FLOW OF FUNDS – Debt Service ReserveFund.
The fund usually held by the Trustee under the Indenture established for payment of debt service on Bonds in the event pledged receipts are insufficient. The fund usually holds an amount equal to maximum annual principal and interest payments on the Bonds, and is usually funded from proceeds of the Issue.
A fund in which moneys are placed in reserve to be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements.  The debt service reserve fund may be entirely funded with bond proceeds at the time of issuance, may be funded over time through the accumulation of pledged revenues, or may be funded only upon the occurrence of a specified event ( e.g., upon failure to comply with a covenant in the bond contract).  In addition, issuers may sometimes authorize the provision of a surety bond or letter of credit to satisfy the debt service reserve fund requirement in lieu of cash.  If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the fund from the first available revenues.  See:  DEBT SERVICE RESERVE FUND REQUIREMENT.