§ 26322 Bondholder Rights Protection Clause

• •If a group borrows money by selling bonds, they must promise to keep that money safe.
• •They also have to make sure the people who bought the bonds get their rights protected.
• •If someone tries to take away those rights, the group must stand up for the bond holders.

A city sells bonds to build a new park. The money from the bonds is only for the park, not for other things like fixing roads.

The city must keep the bond money safe and use it only for the park. If someone tries to use the money for something else, the city has to stop them to protect the people who bought the bonds.