§ 29224 Refunding Bond Funds Use

• •If there's leftover money in the Funding Fund after paying off old debts, it doesn't just sit there.
• •That extra money must go into a special fund just for paying back the new bonds (like a loan).
• •The money in this special fund can only be used to pay back the new loan or its interest, nothing else.

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

That leftover money can't be used for anything else, like buying a new TV or going on vacation. It has to go into a special account, and you can only use it to pay back the new loan or its interest.