funded debt

funded debt definition - finance
A debt issue whose repayment has already been provided for in some manner. One example of funded debt is a bond issue that has a sinking fund, which is a fund to which regular payments are made. When the bond matures, the issuer will have the money on hand to redeem the bonds.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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