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Glossary Term: FLOW OF FUNDS

Definition(s) for FLOW OF FUNDS:


1. ) Refers to the structure which is established in the bond resolution or the trust documents which sets forth the order in which funds generated by the enterprise will be allocated to various purposes.

2. ) Quarterly Federal Reserve survey showing the movement of funds between different sectors of the economy-households, business, governments, and financial institutions. The survey Flow of Funds Accounts is reported monthly in the Federal Reserve Bulletin and is a useful indicator of buying preference of institutional investors; Statement in the bond resolution of a municipal bond issuer stating how municipal revenues are to be applied, generally giving priority to maintenance and operations, and bond debt service. See Also Cash Flow.



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