§ 54466 Insurance Revenue For Bonds

• •If a place makes money from something (like a toll road or parking lot), they can buy insurance in case they lose that money.
• •If they do lose money, the insurance payout can only be used to pay back the loans they took to build or fix that thing.
• •This rule is for things like roads, buildings, or other big projects that make money.

A city builds a parking garage with a loan. They buy insurance in case not enough people park there and they lose money.

If the parking garage doesn’t make enough money, the insurance payout can only be used to pay back the loan for building the garage—not for anything else.