HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Lending&Credit » interest reserve account

Interest Reserve Account

Definition
Type of savings account created to pay off interest costs accrued from a long-term debt obligation. These accounts are more commonly used for large construction projects. The amount stored in an interest reserve account can be calculated through various formulas depending on the size and scope of the underlying debt. For example, one method is to take the total loan value multiplied by the interest percentage multiplied by the estimated length of time it will take to complete the project multiplied by the percentage of time for which the loan will be outstanding.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.