§ 99325 Bond Sale Interest Limits

• •The law is about selling bonds (like loans) for transportation projects.
• •The bonds must be sold at a price that keeps the yearly interest cost at or below 7% on average.
• •They use standard tables to figure out the bond values and interest costs.

A city wants to build a new road but doesn't have enough money. They decide to sell bonds to get the money they need.

The city must sell these bonds at a price that ensures the yearly interest they pay is no more than 7% on average. If they don't follow this rule, they might have to pay too much interest, which could cause money problems later.