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Sinking Fund Requirement

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Sinking fund requirement
A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.

Sinking Fund Provision
A provision in some bond indentures requiring the issuer to put money aside to repay bondholders at maturity. In bonds with such a provision, a fund or account is set up into which a issuer deposits money on a regular basis to repay the bond when it matures. See also: Sinking Fund Bond.


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Long-term debt disclosures are incomplete because they omit dates of maturity, collateral, interest rates, and sinking fund requirements for all long-term borrowings for each of the five years following the date of the last balance sheet presented per SFAS No.
The "double-up" and "triple-up" options allow an issuer to call a total of twice or three times the mandatory sinking fund requirement on each date.
D's disclosure might be the following: Maturities and sinking fund requirements on long-term debt are as follows: 19X2 $10,000 19X3 10,000 19X4 10,000 19X5 65,000 19X6 15,000 19X7-19X8 40,000 $150,000 Related-party disclosures.
 
 
 
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