§ 90065 Revenue Loss Insurance Proceeds

• •The board can buy insurance to protect against losing money for any reason.
• •If they get money from the insurance, they must use it to pay back loans (bonds or notes) or for other agreed-upon purposes.
• •The rules for how to use the insurance money can be written in a special agreement called an indenture.

Imagine a city owns a parking garage that makes money, but it gets damaged in a storm and can't operate.

The city had insurance for this, so they get money from the insurance company. They must use this money to pay back the loans they took to build the garage or for other things they agreed to in their contract.