- an amortizing or being amortized
- money put aside for amortizing a debt, etc.also amor′tize·ment
The definition of amortization is the process of setting aside money to pay off a debt over time.
The yearly premium for car insurance divided into monthly payments is an example of amortization.
- a. The act or process of amortizing.b. The money set aside for this purpose.
- In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of the premium between the purchase date and the maturity date.
(countable and uncountable, plural amortizations)
- The reduction of loan principal over a series of payments.
- The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.
amortization - Investment & Finance Definition
- An accounting technique that reduces the cost of an intangible asset, such as goodwill, by assessing the charge against income over a specific amount of time. For a tangible asset, such as machinery, the term depreciation is used.
- The act of reducing debt by making regular principal and interest payments.
- To provide for the repayment from earnings of the capital invested in a mining property and expended in development, and to provide for the depreciation in value of the plant and equipment, an amortization fund must be accumulated during the life of the mine; or, if it be desired to continue the business of mining elsewhere, a similar fund must be created for the purchase, development and equipment of a new property to take the place of the original deposit when that shall be exhausted.
- Ten years later, when the currency had fallen to 51 pence per milreis, the government found itself unable to meet the interest obligations on its debt and railway guarantees, and an arrangement was made with its creditors in London for the issue of a 5% funding loan to an amount not to exceed £10,000,000, and the suspension of all amortization for thirteen years.
- To cover the special risks of mining, capital should earn a higher interest than in ordinary business, and if we assume that the sinking-fund be safely invested, we must compute the amortization on a lower basis than 5%.
- It was provided that amortization, at £10,000 yearly, should begin in 1917.
- In 1895 an arrangement was made for the reduction of interest to 4%, the beginning of amortization, and the creation of "coffee warrants" to be used in the payment of export duties on coffee assigned for the service of the debt.