In one sentence
Lender-held accounts funded at closing and monthly for taxes, insurance, replacements, tenant improvements, and negotiated repair items.
The longer version
Tax and insurance escrows protect the collateral's basics. Replacement reserves fund the PCA's long-term table. TI and leasing commission reserves cover re-tenanting. Repair holdbacks release against completed work.
Each reserve carries its own funding, release conditions, and paperwork. Release requests are a steady stream of servicing work with document requirements that look like small draw packages.
In Prodeal
Reserve releases run as document requests with statuses and an approval record, so the file shows what was funded, released, and on whose sign-off.
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