§ 50728 Bond Issuance Limitations Clause

• •A contract can stop a group from borrowing more money to build or fix things.
• •This rule is about making sure too many loans aren't taken out for the same project.
• •It helps control how much debt is taken on for improvements.

A school wants to build a new playground but already has a loan for it.

The school's contract might say they can't take out another loan for the same playground, even if they need more money.