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LSDefine

Simple English definitions for legal terms

sinking fund

Read a random definition: metric system

A quick definition of sinking fund:

A sinking fund is a special type of savings account where you put money aside regularly to pay off a big debt in the future. It's like saving up for a big purchase, but instead of buying something right away, you're saving up to pay off a loan or debt over time. The money you save in a sinking fund earns interest, which helps it grow faster. This way, when it's time to pay off the debt, you'll have enough money saved up to do it without having to borrow more money or go into debt again.

A more thorough explanation:

A sinking fund is a type of fund that consists of regular deposits that are accumulated with interest to pay off a long-term corporate or public debt. This fund is used to ensure that there is enough money to pay off the debt when it becomes due.

For example, a company may set up a sinking fund to pay off a bond that will mature in 10 years. The company will make regular deposits into the fund, and the money will accumulate with interest. When the bond matures, the company will use the money in the sinking fund to pay off the debt.

Another example is a municipality setting up a sinking fund to pay off a long-term loan for a public project, such as a new school or road. The municipality will make regular deposits into the fund, and the money will accumulate with interest. When the loan becomes due, the municipality will use the money in the sinking fund to pay off the debt.

In summary, a sinking fund is a way to ensure that there is enough money to pay off a long-term debt when it becomes due. Regular deposits are made into the fund, and the money accumulates with interest until it is needed to pay off the debt.

singuli in solidum | sinking-fund debenture

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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