§ 54465 Insurance Funds For Repairs

• •If a place (like a building or business) gets damaged or destroyed, insurance money should be used to fix or rebuild it.
• •If the money isn't used to fix or rebuild within a certain time, it must be used to pay off any loans (bonds) taken for that place.
• •The local government decides how long the owner has to use the money for repairs before it goes to paying off loans.

A fire burns down a city-owned community center.

The insurance money must first be used to rebuild the community center. If the city doesn’t start rebuilding within the time limit set by the local government, the money must instead be used to pay off any loans taken to build the original community center.