§ 92511 Bond Indenture Covenants

• •This law lets the regents make promises to keep bonds safe.
• •They can add any rules they think are needed to protect the money from the bonds.
• •The rules are part of the agreement when the bonds are issued.

A school wants to borrow money by selling bonds to build a new library.

The school can make rules, like promising to use the money only for the library and to pay back the money on time. These rules help people feel safe to buy the bonds.