§ 100413 Bond Special Tax Covenants

• •If a bond includes a special‑tax provision, the board may add extra covenants.
• •Covenants can cover things like extra matching bonds, tax priority, and other usual bond terms.
• •All added covenants must still obey the rules of the bond‑election ordinance.

A town wants to build a new community center and plans to pay for it with a special property tax. The board can attach extra promises to the bonds, like saying the tax will be paid first and that extra matching bonds may be issued if needed.

Those promises help investors feel the bonds are secure, so the town can raise the money more easily while still following the election ordinance.