§ 43737 Bond Sale Proceeds Use

• •Money from selling bonds must be used to pay off the debt or judgment the bonds were meant for.
• •Bonds can be swapped directly for the old debt at their face value.
• •The treasurer is in charge of making sure the money is used correctly.

A city sells bonds to pay off an old loan for building a school.

The money from selling those bonds must go to paying off that school loan, not for something else like fixing roads. The treasurer makes sure the money is used the right way.