Under the Inwood model (the annuity premise), the sinking fund
accumulations are reckoned at a rate equal to the rate of an investor's return, which is usually the same as the discount rate used by the appraiser to estimate the present value of the income and expenses of the property.
In the proposed circular, the DOE is looking to mandate all service contract holders to submit an overall development program in case of abandonment and to start maintaining a sinking fund
under an interest-bearing escrow account within a year from the start of commercial production.
But the fund was left in deficit, forcing Managing Agents Anchor Trust to increase the sinking fund
contribution for new buyers to 10% of sale pr1ice in 2005.
Bugden though said there is still time as the sinking fund
is created over 10 and up to 20 years.
Finally, the Sixth Circuit gave little weight to Indmar's lack of a sinking fund
and collateral since the company was not highly leveraged.
If applicable, the indenture states conversion and call privileges, sinking fund
requirements, restrictions as to the payment of dividends, and the maximum debt to equity ratio permitted by the borrower.
This paper describes ISFDs, characterizes the interest-rate-contingent sinking fund
in terms of a strip of European call options and a strip of European put options, develops a contingent claims model for valuing ISFDs and the implicit options imbedded in the contingent sinking fund
, and demonstrates the usefulness of ISFDs as an asset-liability management tool.
With the sinking fund
, the company systematically sets aside amounts it projects will be sufficient to pay deferred executive benefits as they become due.
1986), and found the following five factors critical: (1) The notes had no fixed maturity date or fixed obligation to repay; (2) repayment was likely contingent on corporate profitability; (3) the loan was unsecured; (4) the taxpayer did not establish a sinking fund
for repayment; and (5) there was no unconditional and legal obligation to repay at the time the advances were made.
The final replacement reserve funding method is the development of a sinking fund
, based on itemized costs and estimated lives, to accumulate the anticipated replacement costs of short-lived building components.
The consultants advised that if the town 1) followed a consistent plan for financing asset purchases and 2) made annual investments into a sinking fund
for asset replacement, the total cost to taxpayers could be minimized and the tax burden stabilized.