§ 26418 Bond Security Covenants

• •This law lets a group (called 'the board') make promises to keep bonds safe.
• •The promises can be whatever the board thinks is needed to protect the money from the bonds.
• •Bonds are like loans people give to the board, and this law helps make sure those loans are safe.

A school board wants to build a new school, so they ask people to lend them money by buying bonds.

The board can make rules, like promising to use the money only for the new school and to pay the money back on time. This makes people feel safe to lend the money.