Definition of self liquidating debt
The Business Procedures Manual serves several purposes.
For changes that may affect the current tax year, see the Instructions for Form 1120 or the applicable instructions for the corporation’s tax return. For tax years beginning after 2015, the due date for filing corporate returns generally is the 15th day of the 4th month after the end of the corporation's tax year. For returns required to be filed after December 31, 2015, the minimum penalty for failure to file a return that is over 60 days late has increased to the smaller of the tax due or 5.
It is called a self-liquidating bond because the proceeds from the sale of the assets provide the capital with which the issuer may repay the bond.