An interest reserve account holds funds set aside, often at closing from the initial loan proceeds, to cover a borrower’s interest payments for a set period of time. Interest reserves are common in construction and real estate development loans and other projects that may not generate income until the initial work is complete. LoanStreet CLS automates deductions from interest reserve accounts to cover interest payments during the applicable period, including tracking whether the depository pays interest to the borrower on reserve balances, as part of its commercial real estate loan servicing.