§ 25874 District Bond Sale Proceeds

• •The district must sell bonds or notes at the right time to get money for what they were originally bought for.
• •The money from selling these bonds or notes must be used for the same purpose it was meant for when first bought.
• •This rule helps make sure money is used the way it was planned.

A school district buys bonds to build a new playground. Later, they sell those bonds to get the money.

The money from selling the bonds must be used to build the playground, not for something else like buying new computers.