§ 13432 Bond Guarantee Fee Limits

• •The state can charge a small yearly fee for guaranteeing bonds (like a safety promise for loans).
• •The fee is no more than 0.1% (one-tenth of one percent) of the total loan amount.
• •The state can charge less if they want.
• •All fee money goes into a special fund called the Clean Water Bond Guarantee Fund.

A city takes out a $10,000,000 loan to fix old water pipes, and the state promises to back it up if the city can't pay.

The state can charge the city up to $10,000 (0.1% of $10,000,000) each year for this guarantee. The money goes into a fund to help keep water projects safe.