Okuzeka
Finance & Banking vocabulary · Corporate Finance

Debt service reserve account

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, debt service reserve account means: An account holding funds designated to cover debt-service payments when normal cash flows are insufficient.

In Turkish: borç servisi rezerv hesabı

How it is used

Abbreviated DSRA; required balances and withdrawal conditions are defined by the financing agreement.

Example sentences

  1. The project funded its debt service reserve account before paying dividends.

    A designated buffer receives cash ahead of shareholder distributions.

  2. A temporary revenue shortfall required a draw from the debt service reserve account.

    Reserved funds support scheduled payments during a cash shortfall.

Common collocations

  • fund the debt service reserve account
  • DSRA balance
  • project financeLong-term financing for a large project, such as a power plant or motorway, in which the loan is repaid mainly from the project's own future cash flows.
  • repaymentThe act of paying back money you have borrowed, or one of the regular amounts you pay to do this.

More terms: Corporate Finance

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.