Anaheim may issue bonds to upgrade Honda Center for Kings

[Glenn]

But any bonds the city sells has to be backed by the city if there is a default. They can say such and such is paying for it, but the ultimate backer is the city.

I'm not sure how these things work and wasn't the point of the negative article any way. Negative seems negative no matter what the truth is. If there is a default, what does the city get? It's not flushed down the drain, I hope.

 

[Section 101]

I'm not sure how these things work and wasn't the point of the negative article any way. Negative seems negative no matter what the truth is. If there is a default, what does the city get? It's not flushed down the drain, I hope.

The collateral would be part of it, but the city would have to repay the bond holders.

 

[Glenn]

The collateral would be part of it, but the city would have to repay the bond holders.

It's like the principle that if a family forecloses on a home, it becomes a pain in the butt for the lending agency. They really would rather have the money than the home even if dollar per dollar they are equal. In this case, it is a 30 year old bond and the arena will have tall trees growing through it before it is paid off. The city/taxpayers will have something that eventually is worthless.