§ 6569 Bondholder Contract Enforcement

• •If the government promises to pay back money from bonds, they have to keep that promise.
• •People who own the bonds can make the government follow through on their promise.
• •If the government doesn't pay, bond holders can take them to court to fix it.

A city sells bonds to build a new park and promises to pay the money back in 10 years.

If the city doesn’t pay the bond holders after 10 years, the bond holders can sue the city to make them pay.