§ 6589 Local Agency Bond Sales

• •Local agencies (like cities or schools) can sell their bonds to a special group (the authority) without having to hold a public sale.
• •The agreement must include the highest interest rate allowed, the cost to issue the bonds, how much money must be kept in reserve, and what happens if the local agency can't pay back the money.
• •This makes it easier and faster for local agencies to get money by selling bonds.

A small town needs money to build a new school. Instead of holding a big public sale for their bonds, they can sell them directly to the authority.

The town and the authority make an agreement that includes things like the highest interest rate the town will pay and what happens if the town can't pay back the money. This way, the town can get the money they need faster and without the hassle of a public sale.