§ 26327 Bond Proceeds Use Limits

• •This law lets a contract (called an 'indenture') have a rule about how money from selling bonds can be used.
• •The rule can say the money can only be used for specific things, like building or fixing something.
• •The rule can also say the money can't be used for other things, even if they seem similar.

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

The contract for the bonds can say the money can only be used for the park, and not for fixing roads or building a school.