§ 90026 Bondholder Revenue Protection Clause

• •If a group borrows money by selling bonds to build something (like a school or park), they can make rules to protect that thing.
• •The rules can stop them from selling, renting, or messing with the thing they built until the money is paid back.
• •The rules make sure the thing keeps making money to pay back the people who bought the bonds.
• •If they break these rules, the people who bought the bonds can get upset and cause problems.

A city builds a new parking garage using money from selling bonds.

The city promises not to sell or rent out the parking garage in a way that stops it from making money. This way, the garage keeps making money to pay back the people who lent the city money.