- sinking fund
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To spread the burden of major capital expenditure on a building, the tenant may be required to contribute regular periodic amounts, either in addition to or inclusive within the service charge to be collected as a separate fund which will be used to cover the eventual cost. Tenants need to be assured that the fund is effectively ring-fenced so that the landlord cannot spend the accumulated funds before they are due to be used. The funds held by the landlord are likely to be subject to trust under section 42 Landlord and Tenant Act 1987.
Easyform Glossary of Law Terms. — UK law terms.
- sinking fund
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n.A fund used to accumulate money to replace equipment as it wears out, to repay debts as bonds mature, or for other long-term financial obligations.
The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.
- sinking fund
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See reserve fund.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
- sinking fund
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n. A fund with regular deposits made to it that is kept to pay off corporate or governmental debt.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.