Reserve Account Law and Legal Definition

According to 31 CFR 203.2 [Title 31 -- Money and Finance: Treasury; Subtitle B -- Regulations Relating to Money and Finance; Chapter Ii -- Fiscal Service, Department of the Treasury; Subchapter A -- Financial Management Service; Part 203 -- Payment of Federal Taxes and the Treasury Tax and Loan Program; Subpart A -- General Information], reserve account means “an account at an FRB (Federal Reserve Bank) with reserve or clearing balances held by a financial institution or its designated correspondent financial institution, if applicable.”