sinking fund


noun

a fund to extinguish an indebtedness, usually a bond issue.

Origin of sinking fund

First recorded in 1715–25

Example sentences from the Web for sinking fund

British Dictionary definitions for sinking fund

sinking fund

noun

a fund accumulated out of a business enterprise's earnings or a government's revenue and invested to repay a long-term debt or meet a depreciation charge

Cultural definitions for sinking fund

sinking fund

A fund into which companies or governments place money to redeem their bonds and other forms of indebtedness.