§ 29215 Refunding Bond Proceeds Use

• •If there's leftover money from refunding bonds after paying off the debt, it doesn't go into a general fund or get spent on other things.
• •The leftover money must be put into a special fund that's only for paying back the refunding bonds.
• •This special fund can only be used to pay the main amount (principal) or the extra cost (interest) of the refunding bonds when it's due.

Imagine you take out a new loan to pay off your old car loan. After paying off the old loan, you have some money left from the new loan.

You can't use that leftover money to buy a new TV or go on vacation. You have to put it aside and can only use it to pay back the new loan you took out.