§ 7263 Public Corporation Bond Limits

• •This law is about how much money a local government (like a city or school district) can borrow by selling bonds.
• •The local government can borrow as much as they want, but only if they can pay it back with taxes.
• •They can't borrow more than 25% of the total value of all the property (like houses and buildings) in their area.
• •If they already owe money from other loans, that counts toward the 25% limit too.

A small town wants to build a new park and needs to borrow $1 million to do it.

The town can only borrow the money if the total value of all the houses and buildings in town is at least $4 million (because 25% of $4 million is $1 million). If they already owe $200,000 for another loan, they can only borrow $800,000 more.