§ 26422 Bondholder Security Protection Clause

• •If a group borrows money by selling bonds, they can promise to keep that money safe.
• •They must also promise to protect the rights of the people who bought the bonds.
• •This promise can be written into the official agreement about the bonds.

A school district sells bonds to raise money for a new school building.

The school district must promise in writing to use the bond money only for the new building and to protect the rights of the people who bought the bonds. If they don’t, they could get in trouble.