§ 9486 Bond Sinking Fund Authority

• •The board can decide to collect extra money to pay back bonds before they are due.
• •This extra money is saved in a special fund called a 'sinking fund'.
• •The goal is to have enough money to pay off the bonds when they are due.

Imagine you take a loan to buy a house. You decide to save a little extra money every month so you can pay off the loan faster.

The board does something similar. They collect extra money to save up and pay off the bonds before they are due.