§ 81966 Community College Surplus Funds

• •If a community college district has extra money left after paying off all its bonds (like loans for building projects), it can use that money for more building stuff.
• •The extra money can only be used for buying land, building new buildings, or furnishing them for the community colleges in that district.
• •The district has to follow any rules or limits mentioned in the original loan agreement (the 'indenture').

A community college district finishes paying off its loan for a new science building and still has $500,000 left in the construction fund.

The district can use that extra $500,000 to buy land for a new library or to buy furniture for the science building, as long as the original loan agreement doesn’t say they can’t.