§ 29214 Refunding Bond Proceeds Use

• •Money from selling refunding bonds must go to a special fund called the Funding Fund.
• •This money can only be used to pay off the old debt the bonds were meant to cover.
• •The district decides where to keep this money, either with the chief financial officer or a bank.

A school district sells bonds to pay off an old loan for building a new school.

The money from selling these bonds must go into the Funding Fund and can only be used to pay off that old school loan, not for anything else like buying new computers or fixing the playground.