Sinking Fund
/ˈsɪŋ.kɪŋ fʌnd/
Definitions
- (n.) A fund established by periodically setting aside money to repay debt or replace a capital asset.
The company created a sinking fund to ensure it could repay the bondholders upon maturity.
Forms
- sinking fund
Related terms
See also
Commentary
A sinking fund aids financial planning by ensuring funds are available for future liabilities, often required in bond indentures.
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.