§ 26201 Transit Facility Bonding Authority

• •A district can borrow money by selling bonds to build or improve transit facilities.
• •The borrowed money can also be used to buy land, equipment, or other things needed for transit projects.
• •This rule has been in place since 1955.

A city wants to build a new subway line but doesn't have enough cash.

The city can sell bonds (like IOUs) to raise money for the subway. They can also use this money to buy trains, stations, or land for the subway.