Redemption Fund - A sinking fund established for the payment of redeemable debentures,
funded debt, or other obligation. An amount set aside at regular intervals from profits which will be
sufficient to discharge an obligation at maturity. A reserve fund.  A fund accumulated to redeem
outstanding obligations at the end of a certain time.

In the first definition the fund is considered a credit. In the second definition the fund is treated as
a debit. The general practice of today is to restrict the use of the word "Fund" to a debit account
representing actual cash on hand.