Section 35578 Of Article 8. Bonded Indebtedness Of School Districts From California Education Code >> Division 3. >> Title 2. >> Part 21. >> Chapter 3. >> Article 8.

. Any unsold bonds of an elementary, high, or unified school district which is included as a whole in a new school district through any kind of reorganization may be issued by the board of supervisors in the name of the new district and the proceeds derived upon the sale thereof shall be the funds of the new district. However, the proceeds derived upon the sale thereof shall be expended only for the purpose, or purposes, for which such bonds were authorized.