sinking fund. Originally devised in 1717 as one of numerous schemes to reduce the national debt. Legislation provided that any surplus funds from government revenues... A Sinking fund is like a special purpose saving account. The company deposits the money with an intention to repay a debt or replace an asset or acquisition in the future. A sinking fund is a part of a bond indenture or preferred stock charter that requires the issuer to regularly set money aside in a separate custodial account for the exclusive... A bond sinking fund is a restricted asset of a corporation that was
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