Bond Funds

Definition:

Funds used to account for the receipt and disbursement of general obligation bond proceeds. These funds do not account for the debt retirement since the liability created by the sale of bonds is not a liability of bond funds. Depending on the provisions of the bond act, either General Fund or a sinking fund pays the principal of, and interest on, the general obligations bonds. The proceeds and debt of bonds related to a public service enterprise are included in the Public Enterprise Fund classification.

Related terms:

Budget Act

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