sinking fund

noun
a fund to extinguish an indebtedness, usually a bond issue.

Origin:
1715–25

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Collins
World English Dictionary
sinking fund
 
n
a fund accumulated out of a business enterprise's earnings or a government's revenue and invested to repay a long-term debt or meet a depreciation charge

Collins English Dictionary - Complete & Unabridged 10th Edition
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American Heritage
Cultural Dictionary

sinking fund definition


A fund into which companies or governments place money to redeem their bonds and other forms of indebtedness.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Example sentences
The sinking fund shall be deposited in a depositary selected by the county buildings commission.
Another way to prepare for unacceptable loses, especially when loses are predictable, is by using a sinking fund.
The sinking fund is used to payoff the bond at termination.
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