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What is Bond Funds

Bond Funds: For legal basis budgeting aims, funds utilized to account for the receipt and disbursement of non-self liquidating common obligation bond proceeds. Such funds do not account for the debt retirement as the liability made by the sale of bonds is not a liability of bond funds. Based on the provisions of the bond act, either the sinking Fund or a General fund pays the principal and interest on the common obligation bonds. The proceeds and debt of bonds associated to self-liquidating bonds are comprised in non-governmental cost funds.

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