debt service


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Related to debt service: Debt Service Ratio, annual debt service

Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.

References in periodicals archive ?
The increased borrowing today and greater debt service is a rational response to higher expected income in the future.
Gross annual coverage of FGR bonded debt service equaled 3.
Forecasts for cash flows show gross coverage on FGR debt declining to 3x in fiscal 2010, the result of rising debt service costs outpacing projected user charge growth despite sizable rate increases.
Bondholders have a first lien on all pledged revenue and the city covenants to set the SWRF at a level sufficient to provide for debt service requirements.
The additional bonds test requires that fee revenues during the most recent fiscal year are not less than 150% of maximum annual debt service (MADS).
The trustees are required to confirm to the state budget and control board (governor, treasurer, comptroller general, chairman of the senate finance committee, and chairman of the house ways and means committee) not later than December 1st of each year that, based on the revenues for the previous fiscal year, fee revenues are projected to be sufficient to cover debt service in the following calendar year.
Projections show pledged revenues over the period where LDC would have to make both debt service and sinking fund payments are adequate to provide for coverage of both.
Under the normal flow of funds the bond indenture calls for monthly deposits of EBITDA to the trustee with debt service and sinking fund deposits, if required, made prior to release of funds to LDC.
In addition, access to the university's legally available revenues for debt service in the highly unlikely event that revenues from the residence halls are insufficient to meet annual debt service requirements is a positive.
While management has indicated that available airport liquidity could have been used to make the debt service payments, the decision to use the DSRF was made to preserve these balances for capital and other purposes.