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LSDefine

Simple English definitions for legal terms

sinking fund

Read a random definition: factio testamenti

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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babycat
23:27
when they said gentle femdom they were understating it
JumpySubsequentDolphin
23:28
yeah no they for sure should’ve said aggressive dark femdom
JumpySubsequentDolphin
23:30
@babycat: a straight man just told me he’s obsessed w clairo and beabadoobee’s music. curious to hear your thoughts
babycat
23:31
i would not let that slide. too many men out here want to be soft boys
babycat
23:31
good times create weak men, weak men create hard times, and so on
JumpySubsequentDolphin
23:32
i feel like I’ve never been more certain that a man’s a whore in my life
JumpySubsequentDolphin
23:33
what do you MEAN you’re obsessed with clairo and beabadoobee. who are you trying to impress
babycat
23:37
men will say ugh i wish i had a girl to go to the clairo concert with me. whole time they’re just whores
23:38
my buddy went to under grad with her
ok what's wrong with liking beabadoobee though 😭
23:39
^
23:57
straight man who likes beabadoobee has a 60% chance of being full of red flags and that percentage is too high to risk it
23:57
i unfortunately have the falling for straight man by accident because i thought he was bi because he likes clairo and beabadoobee disorder
JumpySubsequentDolphin
23:58
Eggan thank you for understanding. ily.
@Eggan: oh goodness
ExplodingEffoc
0:04
Glue song Clairo and Beabadoobee best song ever
I think a night to remember is better but yea they're both very good
Dkk
0:08
I would call Arendt nuts but correct sometimes.
Dkk
0:09
No idea who these artists are
Dkk
0:30
Hmmm idk if that story helped
0:43
Beabadoobee is such a stupid artist name
0:43
Yeah bro I listen to poo poo pee pee
lavendergiraffe
0:48
who up refreshing they status ;)
Dkk
0:51
I'm watching space ghost coast to coast
how the homies hangin
Dkk
1:44
Hangin well!
Dkk
1:44
On the nightshift
2:37
this chat is hilarious
Dkk
2:37
@idkdude: Thanks. We take pride in that.
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