§ 105233 Lease Agreement Compliance Rules

• •All agreements, leases, and equipment trust certificates must line up with the trust agreement for district bonds.
• •If a contract conflicts with the trust agreement, it can’t be used.
• •The rule protects the people who bought the district’s bonds.

A city school district signs a lease for a new school bus that says the district can sell the bus whenever it wants.

If the trust agreement that secures the district’s bonds says the bus can’t be sold without bondholder approval, the lease would conflict with that agreement, so the lease would not be allowed under this rule.