Debt Service
The amount of principal and interest required to be paid on an issue of bonds.
bond-basics
Bona Fide Debt Service Fund
A fund used primarily to achieve a proper matching of revenues and Debt Service within each Bond Year that is depleted at least once each Bond Year except for a reasonable carryover amount that does not exceed the fund earnings for the immediately preceding Bond Year or 1/12 of the Debt Service for the immediately preceding Bond Year.
See Also
Bond Year
For tax purposes, a twelve-month period which ends on a date selected by the issuer for the purpose of the arbitrage rules.
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Hundreds of Terms and Concepts
Purpose Investment
Investment property acquired to carry out the purpose of a governmental program for which the bonds are issued (i.e., conduit loans, mortgage notes, mortgage-backed securities and student loan obligations).