In one sentence
The reserve a lender collects to fund a property's real estate taxes and insurance premiums as they come due.
The longer version
Tax and insurance escrows are the most common reserves on a commercial loan, protecting the lender by ensuring the collateral's taxes are paid and its insurance stays in force. Shortfalls threaten the lien and the coverage.
The escrow is funded at closing and topped up monthly, and servicers analyze it annually to keep it adequate as taxes and premiums change.
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