Sinking Fund

A fund, often held by the Trustee under an Indenture but sometimes held directly by an Issuer (e.g., a Sinking Fund established under local law in connection with a water or sewer enterprise system) to which the Issuer or the Conduit Borrower periodically makes payments or in which revenues from a project are periodically deposited, for purposes of paying the Debt Service on a Bond Issue.  This fund is sometimes referred to as the “Debt Service Fund” or the “Bond Fund.”

See Also

Debt Service

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

Revenue Fund

A fund into which pledged revenues may be required to be deposited as received and from which disbursements are made to pay allowable operations and maintenance expenses and to meet debt service requirements and deposit requirements to other funds.

Hudson Yards Rail Yards

Start with the Bond Basics

Serial Bonds

Maturities of a bond issue which mature in consecutive years or other shorter periods.