§ 33642 Bond Security Options

• •The government can borrow money by selling bonds to pay for big projects.
• •These bonds can be backed by money the project makes or by the property itself.
• •If the project doesn’t make enough money, the government can use taxes to pay back the bonds.

A city wants to build a new park but doesn’t have enough money right now.

The city can sell bonds to get the money now. If the park doesn’t make enough money from fees or events, the city can use taxes to pay back the people who bought the bonds.