§ 105213 Bond Issuance Covenants

• •The board can create any promises it thinks are proper for issuing extra bonds.
• •Those promises can include giving special taxes priority to pay back the bonds.
• •All promises must still follow the bond election ordinance.

A town wants to raise money to build a new playground and decides to sell extra bonds that will be paid back with a special property tax.

The board can promise that the special tax will be used first to pay back the bonds and can add other usual promises to make the bonds attractive to investors, but they must still follow the rules of the bond election law.