§ 54422 Bond Payment Revenue Security

• •If a company or group issues bonds (like borrowing money), they have to pay it back with interest.
• •The money to pay back the bonds comes from the money the company makes (revenues).
• •If they don’t pay, the people who lent the money can take the company’s money to get paid back.

A city builds a new park using borrowed money (bonds).

The city promises to pay back the money using the fees people pay to use the park. If the city doesn’t pay, the lenders can take the park’s fees to get their money back.