### Question
What is the definition of reserve fund?


### Answer
The definition of **reserve fund** is as follows in *12 U.S.C. § 4742*:

> a fund, established by a participating State, earmarked for a particular participating financial institution, for the purposes of—


(A) depositing all required premium charges paid by the participating financial institution and by each borrower receiving a loan under the Program from a participating financial institution

#### Citation:
  - *12 U.S.C. § 4742*
  - Heading: **CHAPTER 47-COMMUNITY DEVELOPMENT BANKING > SUBCHAPTER II-SMALL BUSINESS CAPITAL ENHANCEMENT**

