§ 54423 Bond Revenue Trust Fund

• •Money from bonds and any extra money made from it is kept safe in a special fund.
• •This special fund is only used to pay back the money borrowed (bonds) and the interest on it.
• •The rules for this fund are decided when the bonds are first approved.

A city borrows money by selling bonds to build a new park.

All the money from selling those bonds, plus any extra money it makes (like interest), goes into a special account. This account can only be used to pay back the people who bought the bonds and the interest they earn. The city can't use this money for anything else, like fixing roads or paying teachers.