What is a Bond Ordinance?
A bond ordinance is a regulation which allows an agency to issue bonds for the purpose of raising money. Most people think of bond ordinances in terms of measures which are brought before the public on the ballot, allowing members of a community to vote on municipal bonds which raise money for things like transportation, schools, and other civic improvements. In this case, a bond ordinance may also be called a bond resolution. However, a local government can also pass a bond ordinance directly. Before going into the specifics of how bond resolutions work, it may help to understand precisely what a bond is. A bond is essentially a loan which is offered in the form of a security to make it more appealing for lenders to provide money. The issuing agency promises to pay interest on the bonds it issues, and to pay back the bond at a set point in the future. Purchasers loan the issuing agency money with the understanding that they will receive a profit on their loan in the long term. Some pe
