Capital fund
Capital:
Capital is money that is used to generate income or make an investment.
Capital fund:
Money set aside for the purchase of capital or fixed assets, such as land, factories or manufacturing equipment.
The above definitions for a
Capital Fund come from business where money is borrowed to pay for
investments that will be paid back in interest, the issuing of bonds or
stock.
The board of a non-profit condo corporation may want a separate
account for upgrades to the corporation that cannot be charged to the
Reserve Funds.
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