Section 54465 Of Article 5. Additional Powers To Secure Bonds From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 6. >> Article 5.

. Without limiting the authority granted, the legislative body may specifically provide that money collected from insurance against accident to or destruction of the physical enterprise shall be used for repairing or rebuilding the damaged or destroyed enterprise. The legislative body may provide that if the money is not so applied within a period specified by the local agency, it shall be applied to the retirement of any outstanding and unredeemed bonds issued for the enterprise.