§ 50723 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 materials could put a claim on the money made from the project.
• •This rule makes sure that the money from the project stays safe and isn’t taken by unpaid workers or suppliers.

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 could take a part of the money the park makes, like from entrance fees, until they get paid.