§ 54426 Bond Revenue Payment Priority

• •The government can decide to pay back bond money (like a loan) before paying for regular upkeep and running costs of a project.
• •This means if a project makes money, that money might first go to paying off the loan instead of fixing things or keeping it running.
• •It’s up to the government to choose if they want to do this.

A city builds a toll bridge using borrowed money (bonds). The bridge makes money from tolls.

The city can decide to use the toll money to pay back the loan first, before spending it on things like repairing potholes or paying bridge workers.