Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- CAPITALIZED INTEREST FUND
An amount funded by bond proceeds and used to pay interest on the bond issue for a specific period of time, usually from closing to the end of construction period of a project. This project will produce revenues necessary to pay debt service after the capitalized interest amount has been exhausted. Capitalized interest periods normally pay interest between 6 months and 3 years.Back