Under the straight-line method (or safe vault method) the accumulation of funds in the sinking fund
is interest free.
A sinking fund
is a means of saving up the money to pay for such repairs.
He said : "The key component of the amendment bill relates to setting up of a sinking fund
or Resolution Cost Fund.
The authority has access to multiple sources of liquidity including the DRF ($114 million), a bank credit facility ($200 million), surplus earnings of the sinking fund
($105 million), as well as the total sinking fund
In other jurisdictions, a sinking fund
is set up by petroleum service contract holders as soon as they begin commercial production.
The nation also has plans to use money from the proposed sinking fund
to redeem some of the government's bonds.
Since the flats came on the market in 1986, owners, when selling, have paid one per cent of the resale value of their property into the sinking fund
to pay for future repairs.
The sinking fund
, which requires a fee to be paid by all unit owners based on estimated wear and tear, is now an obligatory feature to be disclosed by developers and home owners via their associations can take control.
Also, the court accorded little weight to the absence of a sinking fund
as a security device, as it found this factor and the lower court's emphasis on the fact that the advances were unsecured to be superfluous.
Furthermore, Indmar had not paid any dividends or created a sinking fund
from which to repay the advances.
However, the lease must give provision for a sinking fund
to be established.
The authors find that investors associate sinking fund
provisions in municipal revenue bonds with riskier projects or riskier issuers, either of which results in increased borrowing costs for issuers.
debentures have a long history in corporate finance.
But the advantages to indexing principal repayments are less obvious, at least partly because in most cases corporate issuers retain some flexibility to increase principal repayments in response to decreases in interest rates either by making optional redemptions or by exercising the option (when it is available) to "double up" on sinking fund
They have several options: these include the pay-as-you-go method, the sinking fund
, and trust-owned life insurance (TOLI).