§ 92520 Bondholder Revenue Protection Clause

• •This law is about rules for buildings or projects paid for with special borrowed money (bonds).
• •The rules can say the owners can't sell, rent, or mortgage the project without thinking about the people who lent the money.
• •The rules make sure the project keeps making enough money to pay back the lenders.
• •If the project doesn’t follow these rules, the lenders can get upset because they might not get their money back.

A university builds a new dorm using money borrowed from investors.

The university can’t just sell or rent out the dorm in a way that stops them from making enough money to pay back the investors. If they do, the investors can complain because the rules say the university has to protect their money.