(a)(1) Subject to the limitations in § 1-206.03(b), the District may incur indebtedness by issuing general obligation bonds to refund indebtedness of the District at any time outstanding, to finance the outstanding accumulated operating deficit of the general fund of the District of $331,589,000, existing as of September 30, 1990, to finance or refund the outstanding accumulated operating deficit of the general fund of the District of $500,000,000, existing as of September 30, 1997, and to provide for the payment of the cost of acquiring or undertaking its various capital projects. Such bonds shall bear interest, payable on such dates, at such rate or rates and at such maturities as the Mayor, subject to the provisions of § 1-204.62, may from time to time determine to be necessary to make such bonds marketable.
(2) The District may not issue any general obligation bonds to finance the operating deficit existing as of September 30, 1990 described in paragraph (1) of this subsection after September 30, 1992.
(b) The District may reserve the right to redeem any or all of its obligations before maturity in such manner and at such price as may be fixed by the Mayor prior to the issuance of such obligations.
(Dec. 24, 1973, 87 Stat. 804, Pub. L. 93-198, title IV, § 461; Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 4; Aug. 17, 1991, 105 Stat. 540, Pub. L. 102-106, § 4; Aug. 5, 1997, 111 Stat. 768, Pub. L. 105-33, § 11405.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-321.
1973 Ed., § 47-241.
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 4(d) of the Redevelopment Land Agency Disposition Review Congressional Review Emergency Act of 2000 (D.C. Act 13-524, January 11, 2001, 48 DCR 624).
For temporary (90 day) authorization for the issuance of general obligation bonds and bond anticipation notes, see § 2 of General Obligation Bond and Bond Anticipation Notes for Fiscal Years 2002-2007 Authorization Emergency Act of 2002 (D.C. Act 14-418, July 17, 2002, 49 DCR 7392).
For temporary (90 day) authorization for the issuance of general obligation bonds and bond anticipation notes, see §§ 2 to 21 of General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 2002-2007 Authorization Congressional Review Emergency Act of 2002 (D.C. Act 14-508, October 23, 2002, 49 DCR 10222).
Delegation of Authority
Delegation of contracting authority, see Mayor's Order 91-92, June 7, 1991.
Delegation of authority under D.C. Law 9-251, the "General Obligation Bond Act of 1992", see Mayor's Order 93-45, April 22, 1993.
Delegation of authority under D.C. Act 11-404, the "General Obligation Bond Act of 1996", see Mayor's Order 96-146, October 7, 1996 (43 DCR 5671).
Delegation of authority under D.C. Law 12-41, the "General Obligation Bond for Fiscal Year 1998 Act of 1997", see Mayor's Order 98-56, April 15, 1998 (45 DCR 2705).
Delegation of authority under D.C. Law 13-22, the "General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 1999-2004 Authorization Act of 1999", see Mayor's Order 99-132, August 12, 1999 (46 DCR 6981).
Delegation of authority pursuant to the "Health Regulations of the District of Columbia Regulations", see Mayor's Order 99-141, September 2, 1999 (46 DCR 8312).
Delegation of authority under D.C. Act 13-212, the "Fiscal Year 2000 Tax Revenue Anticipation Notes Act of 1999", see Mayor's Order 99-213, December 30, 1999 (47 DCR 40).
Miscellaneous Notes
Enactment upon adoption of federal legislation: Section 4 of D.C. Law 11-254 provided that "§§ 47-101, 47-117, 47-130, 47-301, 47-302, 47-303, 47-304, 47- 304.1, 47-305, 47-310, 47-312, 47-317.1 through 47-317.6, 47-321 through 47- 325, 47-327 through 47-331, and 47-332 through 47-334 of Title 47 [§§ 1- 204.41, 1-204.55, 1-204.50, 1-204.42, 1-204.43, 1-204.44, 1- 204.46, 1-204.53, 1-204.47, 1-204.48, 1-204.49, 1-204.24a through 1-204.24e, 47-317.06, 1-204.61 through 1-204.65, 1- 204.71 through 1-204.75, 1-204.81, 1-204.85, 1-204.86 and 1- 204.90, 2001 Ed.] of the District of Columbia Code shall be enacted as part of Title 47 upon the adoption by Congress of legislation so enacting these sections."
General Obligation Bond 1996 Issuance Authorization Emergency Resolution of 1996: Pursuant to Resolution 11-545, effective October 1, 1996, the Council approved, on an emergency basis, authorization for the borrowing of funds by the Mayor through the issuance and sale of general obligation bonds.
Effective Date of General Obligation Bond Act of 1998: Section 148 of Pub. L. 105-100, 111 Stat. 2181, the District of Columbia Appropriations Act, 1998, provided that, notwithstanding § 602(c)(1) of the District of Columbia Home Rule Act (D.C. Code, § 1-206.02(c)(1)), General Obligation Bond Act of 1998 (D.C. Law 12-41), if enacted by the Council of the District of Columbia and approved by the District of Columbia Financial Responsibility and Management Assistance Authority, shall take effect on the date of such approval or the date of the enactment of this Act, whichever is later. Both Pub. L. 105-100 and D.C. Law 12-41 were approved on November 19, 1997.
General obligation bonds authorized: D.C. Law 12-41, effective November 19, 1997, authorized the issuance of general obligation bonds of the District of Columbia for the purpose of financing certain capital projects and the refunding of certain capital indebtedness of the District of Columbia.
General Obligation Bond Issuance 1998 Additional Authorization Emergency Resolution of 1998: Pursuant to Resolution 12-441, effective March 31, 1998, the Council authorized the borrowing of funds by the Mayor through the issuance and sale of general obligation bonds.
General Obligation Bonds Authorized.--D.C. Law 13-22, the "General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 1999-2004 Authorization Act of 1999" authorizes the issuance of general obligation bond anticipation notes of the District of Columbia for the purposes of financing certain capital projects and the refunding of certain capital indebtedness of the District during fiscal years 1999-2004.
Definitions applicable: The definitions in § 1-201.03 apply to this subchapter.
General Obligation Bonds Authorized: D.C. Law 14-214, effective March 25, 2003, authorized the issuance of general obligation bonds and general obligation bond anticipation notes of the District of Columbia for the purposes of financing certain capital projects and the refunding of certain capital indebtedness of the District of Columbia during fiscal years 2002-2007.
General Obligation Bonds Authorized: D.C. Law 16-212, effective March 6, 2007, authorized the issuance of general obligation bonds and general obligation bond anticipation notes of the District of Columbia for the purposes of financing certain capital projects and the refunding of certain capital indebtedness of the District of Columbia during fiscal years 2007-2012.
(a) The Council may by act authorize the issuance of general obligation bonds for the purposes specified in § 1-204.61. Such an Act shall contain, at least, provisions:
(1) Briefly describing the projects or categories of projects to be financed by the Act;
(2) Identifying the act authorizing each such project or category of projects;
(3) Setting forth the maximum amount of the principal of the indebtedness which may be incurred for the projects to be financed;
(4) Setting forth the maximum rate of interest to be paid on such indebtedness;
(5) Setting forth the maximum allowable maturity for the issue and the maximum debt service payable in any year; and
(6) Setting forth, in the event that the Council determines in its discretion to submit the question of issuing such bonds to a vote of the qualified voters of the District, the manner of holding such election, the date of such election, the manner of voting for or against the incurring of such indebtedness, and the form of ballot to be used at such election.
(b) Any election held on the question of issuing general obligation bonds must be held before the act authorizing the issuance of such bonds is transmitted to the Speaker of the House of Representatives and the President of the Senate pursuant to § 1-206.02(c).
(c) Notwithstanding § 1-206.02(c)(1), the provisions required by paragraph (6) of subsection (a) of this section to be included in any act authorizing the issuance of general obligation bonds shall take effect on the date of the enactment of such act.
(Dec. 24, 1973, 87 Stat. 804, Pub. L. 93-198, title IV, § 462; Aug. 29, 1974, 88 Stat. 793, Pub. L. 93-395, § 1(4); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 5; Aug. 5, 1997, 111 Stat. 769, Pub. L. 105-33, § 11503.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-322.
Miscellaneous Notes
Enactment upon adoption of federal legislation: Section 4 of D.C. Law 11-254 provided that "§§ 47-101, 47-117, 47-130, 47-301, 47-302, 47-303, 47-304, 47- 304.1, 47-305, 47-310, 47-312, 47-317.1 through 47-317.6, 47-321 through 47- 325, 47-327 through 47-331, and 47-332 through 47-334 of Title 47 [§§ 1- 204.41, 1-204.55, 1-204.50, 1-204.42, 1-204.43, 1-204.44, 1- 204.46, 1-204.53, 1-204.47, 1-204.48, 1-204.49, 1-204.24a through 1-204.24e, 47-317.06, 1-204.61 through 1-204.65, 1- 204.71 through 1-204.75, 1-204.81, 1-204.85, 1-204.86 and 1- 204.90, 2001 Ed.] of the District of Columbia Code shall be enacted as part of Title 47 upon the adoption by Congress of legislation so enacting these sections."
(a) After each act of the Council of the District of Columbia under § 1- 204.62(a) authorizing the issuance of general obligation bonds has taken effect, the Mayor shall publish such act at least once in at least 1 newspaper of general circulation within the District together with a notice that such act has taken effect. Each such notice shall be in substantially the following form:
NOTICE
The following act of the Council of the District of Columbia (published with this notice) authorizing the issuance of general obligation bonds has taken effect. As provided in the District of Columbia Home Rule Act, the time within which a suit, action, or proceeding questioning the validity of such bonds may be commenced expires at the end of the 20-day period beginning on the date of the first publication of this notice.
" ..............................
Mayor.
(b) Neither the failure to publish the notice provided for in subsection (a) of this section nor any error in any publication of such notice shall impair the effectiveness of the act of the Council authorizing the issuance of such bonds or the validity of any bond issued pursuant to such act.
(Dec. 24, 1973, 87 Stat. 804, Pub. L. 93-198, title IV, § 463; Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 6.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-323.
1973 Ed., § 47-243.
References in Text
The District of Columbia Self-Government and Governmental Reorganization Act, referred to in this section, is 87 Stat. 774, Pub. L. 93-198, approved December 24, 1973.
Miscellaneous Notes
Enactment upon adoption of federal legislation: Section 4 of D.C. Law 11-254 provided that "§§ 47-101, 47-117, 47-130, 47-301, 47-302, 47-303, 47-304, 47- 304.1, 47-305, 47-310, 47-312, 47-317.1 through 47-317.6, 47-321 through 47- 325, 47-327 through 47-331, and 47-332 through 47-334 of Title 47 [§§ 1- 204.41, 1-204.55, 1-204.50, 1-204.42, 1-204.43, 1-204.44, 1- 204.46, 1-204.53, 1-204.47, 1-204.48, 1-204.49, 1-204.24a through 1-204.24e, 47-317.06, 1-204.61 through 1-204.65, 1- 204.71 through 1-204.75, 1-204.81, 1-204.85, 1-204.86 and 1- 204.90, 2001 Ed.] of the District of Columbia Code shall be enacted as part of Title 47 upon the adoption by Congress of legislation so enacting these sections."
(a) At the end of the 20-day period beginning on the date of the first publication pursuant to the notice in § 1-204.63(a) that an act authorizing the issuance of general obligation bonds has taken effect:
(1) Any recital or statement of fact contained in such act or in the preamble or title of such act shall be deemed to be true for the purpose of determining the validity of the bonds authorized by such act, and the District and all others interested shall be estopped from denying any such recital or statement of fact; and
(2) Such act, and all proceedings in connection with the authorization of the issuance of such bonds including any election held on the question of issuing such bonds, shall be deemed to have been duly and regularly taken, passed, and done by the District, in compliance with this chapter and all other applicable laws, for the purpose of determining the validity of such act and proceedings; and no court shall have jurisdiction in any suit, action, or proceeding questioning the validity of such act or proceedings except in a suit, action, or proceeding commenced before the end of such 20-day period.
(b) At the end of the 20-day period beginning on the date of the first publication pursuant to the notice in § 1-204.63(a) that an act authorizing the issuance of general obligation bonds has taken effect, no court shall have jurisdiction in any suit, action, or proceeding questioning the validity of any general obligation bond issued pursuant to such act if:
(1) Such general obligation bond was purchased in good faith and for fair value; and
(2) Such general obligation bond contains substantially the following statement which shall bind the District of Columbia:
"It is hereby certified and recited that all conditions, acts, and things required by the District of Columbia Home Rule Act and other applicable laws to exist, to have happened, and to have been performed precedent to and in the issuance of this bond exist, have happened, and have been performed and that the issue of bonds, of which this is one, together with all other indebtedness of the District of Columbia, is within every debt and other limit prescribed by law."
(Dec. 24, 1973, 87 Stat. 805, Pub. L. 93-198, title IV, § 464; Aug. 14, 1974, 88 Stat. 458, Pub. L. 93-376, title III, § 306(a); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 7.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-324.
1973 Ed., § 47-244.
Miscellaneous Notes
Enactment upon adoption of federal legislation: Section 4 of D.C. Law 11-254 provided that "§§ 47-101, 47-117, 47-130, 47-301, 47-302, 47-303, 47-304, 47- 304.1, 47-305, 47-310, 47-312, 47-317.1 through 47-317.6, 47-321 through 47- 325, 47-327 through 47-331, and 47-332 through 47-334 of Title 47 [§§ 1- 204.41, 1-204.55, 1-204.50, 1-204.42, 1-204.43, 1-204.44, 1- 204.46, 1-204.53, 1-204.47, 1-204.48, 1-204.49, 1-204.24a through 1-204.24e, 47-317.06, 1-204.61 through 1-204.65, 1- 204.71 through 1-204.75, 1-204.81, 1-204.85, 1-204.86 and 1- 204.90, 2001 Ed.] of the District of Columbia Code shall be enacted as part of Title 47 upon the adoption by Congress of legislation so enacting these sections."
(a) After an act of the Council authorizing the issuance of general obligation bonds under § 1-204.61(a) takes effect, the Mayor may issue such general obligation bonds as authorized by such act of the Council. An issue of general obligation bonds may be all or any part of the aggregate principal amount of bonds authorized by such act.
(b) The principal amount of the general obligation bonds of each issue shall be payable in annual installments beginning not more than 3 years after the date of such bonds and ending not more than 30 years after such date.
(c) The general obligation bonds of each issue shall be executed by the manual or facsimile signature of such officials as may be designated to sign such bonds by the act of the Council authorizing the issuance of the bonds, except that at least 1 such signature shall be manual. Coupons attached to the bonds shall be authenticated by the facsimile signature of the Mayor unless the Council provides otherwise.
(Dec. 24, 1973, 87 Stat. 805, Pub. L. 93-198, title IV, § 465; Aug. 29, 1974, 88 Stat. 793, Pub. L. 93-395, § 1(5); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 8.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-325.
1973 Ed., § 47-245.
General obligation bonds issued under this part may be sold at a private sale on a negotiated basis (in such manner as the Mayor may determine to be in the public interest), or may be sold at public sale upon sealed proposals after publication of a notice of such public sale at least once not less than 10 days prior to the date fixed for sale in a daily newspaper carrying municipal bond notices and devoted primarily to financial news or to the subject of State and municipal bonds published in the city of New York, New York, and in one or more newspapers of general circulation published in the District. Such notice of public sale shall state, among other things, that no proposal shall be considered unless there is deposited with the District as a down payment a certified check, cashier's check, or surety for an amount equal to at least 2% of the par amount of general obligation bonds bid for, and the Mayor shall reserve the right to reject any and all bids.
(Dec. 24, 1973, 87 Stat. 806, Pub. L. 93-198, title IV, § 466; Aug. 29, 1974, 88 Stat. 793, Pub. L. 93-395, § 1(6); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 9; Oct. 12, 1984, 98 Stat. 1974, Pub. L. 98-473, § 131(a); Dec. 19, 1985, 99 Stat. 1185, Pub. L. 99-190, § 101(c); Oct. 30, 1986, 100 Stat. 3341-180, Pub. L. 99-591, § 131; Dec. 22, 1987, 101 Stat. 1329, Pub. L. 100-202, § 1(c); Nov. 21, 1989, 103 Stat. 1280, Pub. L. 101-168, § 129; Nov. 5, 1990, 104 Stat. 2237, Pub. L. 101-518, § 129; Oct. 1, 1991, 105 Stat. 569, Pub. L. 102-111, § 125; Oct. 5, 1992, 106 Stat. 1433, Pub. L. 102-382, § 125; Oct. 29, 1993, 107 Stat. 1347, Pub. L. 103-127, § 124; Sept. 30, 1994, 108 Stat. 2586, Pub. L. 103-334, § 124; Aug. 5, 1997, 111 Stat. 769, Pub. L. 105-33, § 11504.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-326.
1973 Ed., § 47-246.
Miscellaneous Notes
Applicability of amendments: Section 131(k) of Public Law 98-473 provided that amendments made by this section shall not be applicable with respect to any law which was passed by the Council prior to the date of enactment of this act, and such laws are deemed valid, in accordance with the provisions thereof notwithstanding such amendments, and any previous act of the Council which had been disapproved by the Congress pursuant to section 602(c)(1) or section 602(c)(2) is deemed null and void. Public Law 98-473 was approved October 12, 1984.
Effective period of § 131 of Public Law 98-473: Section 131(n) of Public Law 98-473 provided that the provisions of this section shall be effective hereafter without limitation as to fiscal year, notwithstanding any other provision of the joint resolution. Public Law 98-473 was approved October 12, 1984.
Enactment upon adoption of federal legislation: Section 4 of D.C. Law 11-254 provided that "§§ 47-101, 47-117, 47-130, 47-301, 47-302, 47-303, 47-304, 47- 304.1, 47-305, 47-310, 47-312, 47-317.1 through 47-317.6, 47-321 through 47- 325, 47-327 through 47-331, and 47-332 through 47-334 of Title 47 [§§ 1- 204.41, 1-204.55, 1-204.50, 1-204.42, 1-204.43, 1-204.44, 1- 204.46, 1-204.53, 1-204.47, 1-204.48, 1-204.49, 1-204.24a through 1-204.24e, 47-317.06, 1-204.61 through 1-204.65, 1- 204.71 through 1-204.75, 1-204.81, 1-204.85, 1-204.86 and 1- 204.90, 2001 Ed.] of the District of Columbia Code shall be enacted as part of Title 47 upon the adoption by Congress of legislation so enacting these sections."
(a) In general. -- An act of the Council authorizing the issuance of general obligation bonds or notes under § 1-204.61(a), § 1-204.71(a), § 1- 204.72(a), or § 1-204.75(a) may create a security interest in any District revenues as additional security for the payment of the bonds or notes authorized by such act.
(b) Contents of acts. -- Any such act creating a security interest in District revenues may contain provisions (which may be part of the contract with the holders of such bonds or notes):
(1) Describing the particular District revenues which are subject to such security interest;
(2) Creating a reasonably required debt service reserve fund or any other special fund;
(3) Authorizing the Mayor of the District to execute a trust indenture securing the bonds or notes;
(4) Vesting in the trustee under such a trust indenture such properties, rights, powers, and duties in trust as may be necessary, convenient, or desirable;
(5) Authorizing the Mayor of the District to enter into and amend agreements concerning:
(A) The custody, collection, use, disposition, security, investment, and payment of the proceeds of the bonds or notes and the District revenues which are subject to such security interest; and
(B) The doing of any act (or the refraining from doing any act) that the District would have the right to do in the absence of such an agreement;
(6) Prescribing the remedies of the holders of the bonds or notes in the event of a default; and
(7) Authorizing the Mayor to take any other actions in connection with the issuance, sale, delivery, security, and payment of the bonds or notes.
(c) Timing and perfection of security interests. -- Notwithstanding article 9 of title 28 of the District of Columbia Code, any security interest in District revenues created under subsection (a) of this section shall be valid, binding, and perfected from the time such security interest is created, with or without the physical delivery of any funds or any other property and with or without any further action. Such security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to such security interest is recorded or filed. The lien created by such security interest is valid, binding, and perfected with respect to any individual or legal entity having claims against the District, whether or not such individual or legal entity has notice of such lien.
(d) Obligations and expenditures not subject to appropriation. -- The fourth sentence of § 1-204.46 shall not apply to any obligation or expenditure of any District revenues to secure any general obligation bond or note under subsection (a) of this section.
(Dec. 24, 1973, 87 Stat. 806, Pub. L. 93-198, title IV, § 467, as added Dec. 23, 1981, 95 Stat. 1496, Pub. L. 97-105, § 10; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 770, Pub. L. 105-33, § 11505.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-326.1.
Miscellaneous Notes
Request for Congressional action: Pursuant to § 501(a) of D.C. Law 10-188, the Council for the District of Columbia requested that Congress amend subsection (d), § 467(d) of the District of Columbia Self-Government and Governmental Reorganization Act, to read as follows:
"(d) The fourth sentence of § 47-304 [§ 1-204.46, 2001 Ed.] shall not apply to any obligation or expenditure of any District revenues to secure any general obligation bond under subsection (a) of this section or any revenue bond or other obligation under subsection (a-1) of this section or for repair, maintenance, and capital improvements. Other operating obligations or expenditures shall not be exempt from the fourth sentence of § 47-304 [§ 1- 204.46, 2001 Ed.], except that if the operating obligations or expenditures are incurred prior to October 1, 1995, they shall be approved pursuant to the procedures set forth in § 47-304.1 [§ 1-204.53, 2001 Ed.]."
