Debt Service
The amount of principal and interest required to be paid on an issue of bonds.
bond-basics
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
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.
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Hundreds of Terms and Concepts
Direct Pay Bond
A taxable bond that offers a federal Interest subsidy to the Issuer in lieu of the interest being excludable from federal income tax.