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Some muni bonds have sinking funds where a portion of the principal due at maturity is put into an escrow fund each year to accumulate funds to repay the issue. That makes the bond more secure, but the payment does not go to the bond holder until maturity.

This sounds like something the state (?) might require of our school districts--I think I've heard our district business person talk about a sinking fund, but it didn't really make sense at the time.


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