§ 54413 Bond Validity Recital Rule

• •If a group decides to borrow money by selling bonds, they can say the bonds follow this law.
• •If the bonds say they follow this law, they are automatically considered legal and correct.
• •This makes it easier to trust that the bonds are real and follow the rules.

A city wants to build a new park but needs money, so they sell bonds to raise funds.

If the bonds say they follow this law, everyone can be sure the bonds are legal and the city did everything right.