Purchase fund

Purchase fund

Resembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value.

Purchase Fund

A sinking fund where a company sets money aside to repurchase its own securities if their prices fall below par. If the prices fall below par value, the purchase fund enables the company effectively to redeem its securities at a discount. The purchase fund reduces the risk that the company will be unable to redeem its bonds when they mature.
References in periodicals archive ?
He indicated that a credit purchase fund has been created to allow the first transactions with Iran to take place.
Fianna Fail's Stephen Donnelly has said the latest figures from the National Treatment Purchase Fund show 11% of the population are waiting to see a consultant.
Tenders are invited for it is a function of the national treatment purchase fund ("ntpf"), in accordance with statutory instrument 179 - national treatment purchase fund (establishment order), to arrange for the provision of hospital treatment to classes of persons determined by the minister for health.
The Undersecretary of the Ministry of Minerals announced their support for the proposal to establish a gold purchase fund to facilitate the coming of large production of gold to the official channels directly, considering that trend serving the new economic policies that enable the government and the ministry to bring the quantities of gold produced to the official channels which will support the Sudanese economy directly, adding that this could be the nucleus of the Gold Exchange, which his ministry has been seeking with the concerned authorities at the Ministry of Finance since several years.
Statistics published by the National Treatment Purchase Fund also show 17,308 from a total of 54,308 children on the waiting list have been there more than a year.
"Ultimately, it is the PS2 pot which will pay for this investment - and we can reassure members that all money borrowed in the short term from the share purchase fund will be repaid and protected to be used for the share purchase."
Members of the Dumfries Historic Buildings Trust (DHBT) were stunned when a cheque for PS5,000 towards the mills' purchase fund dropped through the letterbox.
It was purchased by the Bodleian with grants from the V&A Purchase Fund and the friends of the library.
The lease payments would go back into a parkland purchase fund, and when the value of the lease payments exceeded the city's purchase price, a positive revenue stream would be achieved.
He said buying government bonds through its asset purchase fund is likely to remain an effective easing tool, but the central bank also needs to take heed to avoid having its policy being perceived by others as monetizing government debts.
The asset purchase fund has been its main policy tool since its introduction in October 2010.
The purchase was made after funding from Cardiff council, the V&A Purchase Fund and the UK Antarctic Heritage Fund.