§ 50795 Bond Interest And Construction Payments

• •The board can use the construction fund to pay interest and some of the main amount of revenue bonds before and during the building of a project.
• •They can keep using this fund for up to two years after the project is done.
• •The construction fund can also pay for admin costs for one year after the project is finished.

A city is building a new community center and took out a loan (revenue bonds) to pay for it.

While the center is being built, the city can use the construction fund to pay the interest on the loan and some of the loan itself. They can keep doing this for up to two years after the center is built. They can also use the fund to pay for things like salaries and office supplies for one year after the center is done.