§ 70261 District Bond Security Use

• •Bonds from this district can be used as security by banks in the state.
• •These bonds work the same way as bonds from any other city or town.
• •Banks can use these bonds to protect money deposited by the state or local governments.

A city government wants to deposit money in a bank but needs to make sure the money is safe.

The bank can use bonds from this district as a guarantee to protect the city's money, just like they would with bonds from any other city.