§ 14037 Bond Interest Transfer Rules

• •Money from selling bonds and the interest earned on them goes into a special fund.
• •This money can be moved to the General Fund to help pay for the interest on those bonds.
• •The law was added in 1988 and approved by voters.

Imagine the government sells bonds to raise money for building schools.

The money from selling those bonds, plus any interest earned, is kept in a special account. If the government needs to pay interest on those bonds, it can take money from this special account to cover the cost.