§ 101148 Bond Fund Interest Transfers
This law says that any extra money earned from college bonds—like interest and extra payment above face value—must stay in a special fund, and can be moved to the main college budget to help pay the bond interest, while the extra payment (premium) can first be used to cover the cost of issuing the bonds.
A community college sells $10 million of bonds and gets $200,000 extra (premium) plus interest each year. The $200,000 premium is first used to pay the fees for selling the bonds, and the remaining interest money can be moved to the college’s main budget to lower the amount they have to spend on bond interest.
The college puts the premium and interest into the special bond fund. Before moving any money, it uses the premium to pay the bond‑selling costs. After that, the rest can be transferred to the General Fund to count as a credit against the interest they owe on the bonds.
AI-generated — May contain errors. Not legal advice. Always verify source.
§ 101148 Bond Fund Interest Transfers
Last verified: January 10, 2026