§ 9018 District Bond Payment Priority

• •If a district (like for water or land projects) has borrowed money by selling bonds, they must use extra money to pay back those bonds.
• •The district's leaders must tell the person in charge of the money (like the county treasurer) to use any leftover funds to pay the bond interest or the main amount borrowed.
• •This rule makes sure that borrowed money gets paid back before anything else.

A small town has a special district to build levees to stop flooding. They borrowed money by selling bonds to pay for the work.

If the district has extra money after paying its bills, the leaders must tell the treasurer to use that extra money to pay back the bonds. They can't spend it on something else until the bonds are paid off.