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What is a sinking fund?

What is a sinking fund? Here are some definitions.

Noun
  1. A fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt.
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Insurance premiums are taken out in conjunction with the sinking fund, and they decline as the fund increases.
The sinking fund, where money for long-term expenditure goes, had run dry, so if there was a serious problem there would have been real trouble.
The sinking fund on the balance to vary with the rate of Germanys recovery.
While the sinking fund may not cover the full cost of such an operation, it can take the sting out of its tail.
The following year a sinking fund was established in an effort to amortize the debt.
This was the establishment of the sinking fund for the redemption of the debt.

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