A sinking fund is a fund established by a government agency or business for the purpose of reducing debt by repaying or purchasing outstanding loans and securities held against the entity. It helps keep the borrower liquid so it can repay the bondholder.
Read more about Sinking Fund: Historical Context, Modern Context, Types, Sinking Fund Appropriation On Debt, Benefits and Drawbacks
Famous quotes containing the words sinking and/or fund:
“I consider that that “that” that worries us so much should be forgotten. Rats desert a sinking ship. Thats infest a sinking magazine.”
—James Thurber (1894–1961)
“I am advised that there is an unexpended balance of about $45,000 of the fund appropriated for the relief of the sufferers by flood upon the Mississippi River and its tributaries, and I recommend that authority be given to use this fund to meet the most urgent necessities of the poorer people in Oklahoma.”
—Benjamin Harrison (1833–1901)