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A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset.
- ‘The banks which finance the investors may well require that the promoters/operators put aside a fixed amount into a sinking fund over the period of ownership by the investors.’
- ‘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.’
- ‘In each period a certain percentage of gross output is set aside into a sinking fund for depreciation and replacement; this percentage is based on the length of life of machines, which is assumed to be given and constant.’
- ‘Just consider the likelihood of congressmen agreeing to set aside $400 billion a year in a sinking fund instead of spending it on programs, projects, and overseas adventures designed to get him, or her, re-elected.’
- ‘He also proposed a sinking fund, financed by post office revenues, that would be pledged to pay off the debt.’
sinking fund/ˈsiNGkiNG ˌfənd/
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