§ 103513 Bond Special Tax Covenants

• •The board may add covenants when special‑tax bonds are allowed.
• •Covenants can include issuing extra matching bonds and giving tax revenues priority to bond holders.
• •All added covenants must follow the rules of the original bond election ordinance.

A town wants to build a new library and plans to fund it with special‑tax bonds that will be paid back from a new local sales tax.

The board can add extra promises, like issuing more bonds that match the first ones, saying the sales‑tax money will be used first to pay bond holders, and including any other standard terms that help sell the bonds, but they must still obey the rules that were set when the town voted on the bond.