Sinking fund

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Related to Redemption Fund: sinking fund

SINKING FUND. A fund arising from particular taxes, imposts, or duties, which is appropriated towards the payment of the interest due on a public loan and for the gradual payment of the principal. See Funding System.

References in periodicals archive ?
In addition, general obligation debt service must be covered 5x by receipts of the bond security and redemption fund, excluding fuel taxes.
Monies in the bond and interest redemption fund are paid into a trust account at the bank or trust company where the bonds are payable.
Monies in the special reserve fund can also be used by the corporation for transfer to the redemption fund an amount equal to a loan loss beyond what is covered by the primary mortgage insurance or guarantee.
The notes are not general obligations, but contractual obligations secured by general fund appropriations to the operating note redemption fund.
SURPLUS REVENUES SUPPORT DEBT: The indenture creates a closed flow of funds; surplus tax increment revenues from years prior are deposited into the redemption fund supporting the continued servicing of annual debt obligations.
As a result of the recent increase in receipt of entry fees, the trustee-held redemption fund for this balloon payment contained $1.
Payable from revenues pledged from the general fund to the operating note redemption fund (i.
There are strong legal provisions for GO debt, with all nondedicated revenues flowing into the bond security and redemption fund to provide first for debt service.
Although the guaranty agreements do not provide for complete coverage of debt service, the authority has built up surplus TIF revenues which are held in its redemption fund and have historically been used to make bond payments.