Payment in kind

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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).

Etymology

“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.

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.

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Last updated on Thursday July 17, 2008 at 14:15:44 PDT (GMT -0700)
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