§ 26438 Bond Interest Rate Limits

• •The interest rate on these bonds cannot be more than 8% per year.
• •Interest can be paid once a year, twice a year, or a mix of both.
• •Before selling the bonds, the board can set rules on how interest is paid.

If a city sells bonds to build a new park, they promise to pay back the money with extra (interest).

The city can’t charge more than 8% extra per year. They can pay this extra money once a year or split it into two payments. The city can also decide rules, like only paying interest after the park is built.