Legal Definitions - reserve

Reserve means to keep a right or a part of a property for oneself while transferring the rest to someone else.

It can also refer to something that is kept aside for future use, like a fund of money that a bank or an insurance company sets aside to cover future expenses.

Example 1: When selling a piece of land, the owner may reserve the right to use a small portion of it for personal use, like a garden or a driveway.

Example 2: A bank may have a reserve fund to cover unexpected losses or expenses.

Example 3: An insurance company may have a reserve fund to cover future claims from policyholders.

These examples illustrate how reserve can refer to both a legal right to keep a portion of a property and a financial practice of setting aside funds for future use.