Payment in kind
From Wikipedia, the free encyclopedia
(Redirected from In-kind)
 |
This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2006) |
See also: PIK loan
Payment in kind refers to payment for goods or services with a medium other than legal tender (anything can be used as money, but legal tender is what the State accepts for all debts).
[edit] Etymology
 |
Look up payment in kind in Wiktionary, the free dictionary. |
“Kind” (or sometimes kine) in this context is an archaic noun meaning cattle, from the Middle English word kyn. The term originates from a period in history when livestock were a common means of exchange.[citation needed]
[edit] Finance
In modern finance, when a bond pays in kind (PIK), it means that the interest on the bond is paid other than in cash, most commonly by increasing the principal.
