§ 90019 Bond Security Covenants

• •This law lets a group (like a school board) make promises to people who lend them money.
• •The promises help make sure the lenders get their money back.
• •The group can decide what promises to make, as long as it helps keep the loan safe.

A school board wants to borrow money to build a new school.

The board can promise things like 'We will use the new school building only for teaching' or 'We will keep the building in good shape' to make the lenders feel safe about lending the money.