Liability Fund
/ˌlaɪəˈbɪləti fʌnd/
Definitions
- (n.) A reserve fund established by an entity to cover potential liabilities or claims against it.
The company allocated money to a liability fund to prepare for possible legal claims.
Forms
- liability fund
Related terms
See also
Commentary
Often used in corporate and governmental accounting to segregate monies for anticipated legal or financial obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.