§ 6540 Bond Definitions And Terms

• •This law talks about 'bonds'—which are like IOUs or promises to pay back money.
• •Bonds can be called different names, like 'revenue bonds' or 'notes', but they all mean the same thing: borrowed money that needs to be paid back.
• •This rule was changed in 1955 to make it clearer.

Imagine your city needs money to build a new park, so they borrow money from people by selling 'bonds'.

Those bonds are just promises to pay the money back later, with a little extra as a thank-you. This law says those promises can have different names, but they all work the same way.