§ 90024 Bondholder Security Protection Clause

• •If a group borrows money by selling bonds, they can promise to keep that money safe.
• •They must also promise to protect the rights of the people who bought the bonds.
• •This promise can be written in the official agreement about the bonds.

A city sells bonds to raise money for a new park.

The city must promise in writing to use the bond money only for the park and to protect the rights of the people who bought the bonds. If they don’t, they could get in trouble.