The feature in a bond indenture that requires systematic retirement of the bond issue is a

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A sinking fund provision requires the issuer to systematically retire a portion of the bond issue over time by setting aside funds for that purpose. This helps to reduce the overall risk of default and provides investors with some measure of assurance that they will receive payment when due. A planned call provision allows the issuer to retire the bonds at a pre-determined price or schedule, while a forced conversion provision allows the issuer to convert the bonds into a different security at a specified point in time. A mandated redemption provision may require the issuer to retire the bonds under certain conditions, but it is not the same as a sinking fund provision.

The Feature in a Bond Indenture That Requires Systematic Retirement