§ 50745 Bond Interest During Construction

• •Money from selling bonds can be used to pay the interest on those bonds while building a project.
• •This can only happen during the building time and for up to 2 years after the project is done.
• •The rules for how this works are written in a special agreement called an indenture.

A city sells bonds to build a new school.

While the school is being built, the city can use some of the money from selling those bonds to pay the interest on the bonds. They can keep doing this for up to 2 years after the school is finished.