§ 13263 Bond Interest Prepayment Authority

• •The government can borrow money by selling bonds to pay for big projects like building schools or roads.
• •Instead of paying the interest on these bonds right away, they can include the interest costs in the total amount they borrow.
• •The interest can be covered for up to 5 years while the project is being built or completed.

A city wants to build a new park but doesn't have all the money upfront.

The city can borrow money by selling bonds and include the interest costs for the first few years in the total amount they borrow. This way, they don't have to pay the interest right away while the park is being built.