§ 92446 Revenue Loss Insurance Bonds

• •The regents can buy insurance to protect against losing money for any reason.
• •If they get money from this insurance, they can only use it to pay back bonds and the interest on those bonds.
• •Bonds are like loans they took to pay for big projects.

Imagine a university (run by the regents) has a big stadium. They took a loan (bond) to build it. One day, a huge storm destroys the stadium, and they can’t make money from games anymore.

The regents can use insurance money to pay back the loan they took to build the stadium. They can’t use that money for anything else, like building a new library.