A purchase fund is similar to a sinking-fund provision. It can be an advantage to investors if the fund is trading below par value, because the company must pay par to repurchase the bonds.
Investment dictionary. Academic. 2012.
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purchase fund — Resembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value. Bloomberg Financial Dictionary Where a bond is redeemed in instalments over its life. The bonds which are redeemed early ( at… … Financial and business terms
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purchase fund — A fund used to purchase bonds that have fallen below par value … Big dictionary of business and management
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sinking fund — Cash set aside under restricted conditions as required by the terms of certain types of debt. See sinking fund bonds ( sinkers). American Banker Glossary A fund to which money is added on a regular basis that is used to ensure investor confidence … Financial and business terms