Payment in kind
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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
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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.
