diff --git a/app/models/domain.rb b/app/models/domain.rb
index b57a2c44b..f8a693028 100644
--- a/app/models/domain.rb
+++ b/app/models/domain.rb
@@ -80,7 +80,7 @@ class Domain < ActiveRecord::Base
 
   after_create :update_reserved_domains
   def update_reserved_domains
-    return unless reserved?
+    return unless in_reserved_list?
     rd = ReservedDomain.first
     rd.names[name] = SecureRandom.hex
     rd.save
@@ -95,7 +95,7 @@ class Domain < ActiveRecord::Base
   validate :validate_reservation
   def validate_reservation
     return if persisted?
-    return if !reserved? || reserved_pw == auth_info
+    return if !in_reserved_list? || reserved_pw == auth_info
     errors.add(:base, :domain_is_reserved_and_requires_correct_auth_info)
   end
 
@@ -261,7 +261,7 @@ class Domain < ActiveRecord::Base
     @registrant_typeahead || registrant.try(:name) || nil
   end
 
-  def reserved?
+  def in_reserved_list?
     reserved_pw.present?
   end
 
@@ -515,7 +515,7 @@ class Domain < ActiveRecord::Base
   end
 
   def manage_automatic_statuses
-    statuses << DomainStatus::RESERVED if new_record? && reserved?
+    statuses << DomainStatus::RESERVED if new_record? && in_reserved_list?
 
     # domain_statuses.create(value: DomainStatus::DELETE_CANDIDATE) if delete_candidateable?
     if statuses.empty? && valid?
diff --git a/spec/epp/domain_spec.rb b/spec/epp/domain_spec.rb
index deb707da1..ebcbedd68 100644
--- a/spec/epp/domain_spec.rb
+++ b/spec/epp/domain_spec.rb
@@ -1490,6 +1490,33 @@ describe 'EPP Domain', epp: true do
       d.pending_update?.should == false
     end
 
+    it 'should keep reserved status after reserved domain update' do
+      domain.statuses = ['reserved']
+      domain.save
+
+      xml_params = {
+        name: { value: domain.name },
+        chg: [
+          registrant: { value: 'FIXED:CITIZEN_1234', attrs: { verified: 'yes' } }
+        ]
+      }
+
+      response = epp_plain_request(domain_update_xml(xml_params, {}, {
+        _anonymus: [
+          legalDocument: {
+            value: 'dGVzdCBmYWlsCg==',
+            attrs: { type: 'pdf' }
+          }
+        ]
+      }))
+
+      response[:results][0][:msg].should == 'Command completed successfully'
+      response[:results][0][:result_code].should == '1000'
+
+      d = Domain.last
+      d.statuses.should match_array(['reserved'])
+    end
+
     it 'updates a domain' do
       existing_pw = domain.auth_info