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

Debt Service

The amount of principal and interest required to be paid on an issue of bonds.

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.

Hudson Yards Rail Yards

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