§ 50765 Bond Protection Against Competition

• •The board can promise not to build or buy similar projects while certain bonds are still active.
• •This promise is part of the agreement when they issue the bonds.
• •The board must keep this promise as long as the bonds are not yet paid off.

A city builds a new toll bridge and sells bonds to pay for it. In the bond agreement, the city promises not to build another toll bridge nearby while these bonds are still being paid off.

This means the city can't build a second toll bridge that would compete with the first one until all the bonds for the first bridge are paid back. This protects the investors who bought the bonds.