§ 26423 Bond Security Lien Protection

• •If a project is built using money from bonds, the people in charge must pay for all the work, materials, and supplies used.
• •If they don’t pay, the people who did the work or provided the stuff can put a legal claim on the project’s money or property.
• •This rule makes sure the project’s money or property stays safe for the people who bought the bonds.

A city builds a new park using money from bonds. They hire a company to build the playground and another to supply the swings and slides.

The city must pay the company that built the playground and the one that supplied the swings and slides. If they don’t pay, those companies can take legal action to get the money from the park’s funds or property. This rule makes sure the park’s money is used to pay these bills so the people who bought the bonds don’t lose their investment.