§ 26419 Bond Payment Requirements

• •If a company or government issues bonds (like borrowing money from people), they must pay back the money on time.
• •They also have to pay the extra money (interest) they promised to the people who lent them money.
• •The rules for paying back must be clear, like when, where, and how they will pay.

A city borrows money from people to build a new park. They promise to pay back $1000 to each person in 5 years, plus $50 extra every year.

The city must pay the $1000 and the $50 every year on time, just like they promised. If they don’t, they are breaking the rules.