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District of Columbia Official Code 2001 Edition. |
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Division VIII. General Laws. |
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Title 47. Taxation, Licensing, Permits, Assessments, and Fees. |
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Chapter 3. Budget and Financial Management; Borrowing; Deposit of Funds. |
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Subchapter VII. Financial Responsibility and Management Assistance. |
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Part C. Issuance of Bonds.
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(a) In general. --
(1) Request of Mayor. -- Subject to the requirements of this part, the Authority may at the request of the Mayor pursuant to an act of the Council issue bonds, notes, or other obligations to borrow funds to obtain funds for the use of the District government, in such amounts and in such manner as the Authority considers appropriate.
(2) Special rule for instrumentalities with independent borrowing authority. -- In the case of an agency or instrumentality of the District government which under law has the authority to issue bonds, notes, or obligations to borrow funds without the enactment of an act of the Council, the Authority may issue bonds, notes, or other obligations to borrow funds for the use or functions of such agency or instrumentality at the request of the head of the agency or instrumentality.
(b) Deposit of funds obtained through borrowing with Authority. -- Any funds obtained by the District government through borrowing by the Authority pursuant to this part shall be deposited into an escrow account held by the Authority, which shall allocate such funds to the District government in such amounts and at such times as the Authority considers appropriate, consistent with the specified purposes of such funds and the applicable financial plan and budget under part B of this subchapter.
(c) Use of funds obtained through bonds. -- Any funds obtained through the issuance of bonds, notes, or other obligations pursuant to this part may be used for any purpose (consistent with the applicable financial plan and budget) under part B of this subchapter for which the District government may use borrowed funds under the District of Columbia Home Rule Act and for any other purpose which the Authority considers appropriate.
(Apr. 17, 1995, 109 Stat. 137, Pub. L. 104-8, § 211; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-392.11.
References in Text
"The District of Columbia Home Rule Act," referred to in (c), is Pub. L. 93- 198, 87 Stat. 774, approved December 24, 1973.
(a) In general. -- The Authority may pledge or grant a security interest in revenues to individuals or entities purchasing bonds, notes, or other obligations issued pursuant to this part.
(b) Dedication of revenue stream from District government. -- The Authority shall require the Mayor:
(1) To pledge or direct taxes or other revenues otherwise payable to the District government (which are not otherwise pledged or committed), including payments from the Federal Government, to the Authority for purposes of securing repayment of bonds, notes, or other obligations issued pursuant to this part; and
(2) To transfer the proceeds of any tax levied for purposes of securing such bonds, notes, or other obligations to the Authority immediately upon collection.
(Apr. 17, 1995, 109 Stat. 137, Pub. L. 104-8, § 212; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-392.12.
(a) In general. -- As a condition for the issuance of bonds, notes, or other obligations pursuant to this part, the Authority shall establish a debt service reserve fund in accordance with this section.
(b) Requirements for fund. --
(1) Fund described. -- A debt service reserve fund established by the Authority pursuant to this subsection shall consist of such funds as the Authority may make available, and shall be a trust fund held for the benefit and security of the obligees of the Authority whose bonds, notes, or other obligations are secured by such fund.
(2) Use of funds. -- Amounts in a debt service reserve fund may be used solely for the payment of the principal of bonds secured in whole or in part by such fund, the purchase or redemption of such bonds, the payment of interest on such bonds, or the payment of any redemption premium required to be paid when such bonds and notes are redeemed prior to maturity.
(3) Restrictions of withdrawals. --
(A) In general. -- Amounts in a debt service reserve fund may not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund to less than the minimum reserve fund requirement established for such fund in the resolution of the Authority creating such fund, except for withdrawals for the purpose of making payments when due of principal, interest, redemption premiums and sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the Authority are not available, and for the purpose of funding the operations of the Authority for a fiscal year (in such amounts and under such conditions as are established under the budget of the Authority for the fiscal year under § 47-391.06(a)).
(B) Use of excess funds. -- Nothing in subparagraph (A) of this subsection may be construed to prohibit the Authority from transferring any income or interest earned by, or increments to, any debt service reserve fund due to the investment thereof to other funds or accounts of the Authority (to the extent such transfer does not reduce the amount of the debt service reserve fund below the minimum reserve fund requirement established for such fund) for such purposes as the Authority considers appropriate to promote the financial stability and management efficiency of the District government.
(Apr. 17, 1995, 109 Stat. 138, Pub. L. 104-8, § 213; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-392.13.
(a) Minimum debt service reserve fund requirement. -- The Authority may not at any time issue bonds, notes, or other obligations pursuant to this part which are secured in whole or in part by a debt service reserve fund under § 47- 392.13 if issuance of such bonds would cause the amount in the debt reserve fund to fall below the minimum reserve requirement for such fund, unless the Authority at the time of issuance of such bonds shall deposit in the fund an amount (from the proceeds of the bonds to be issued or from other sources) which when added to the amount already in such fund will cause the total amount on deposit in such fund to equal or exceed the minimum reserve fund requirement established by the Authority at the time of the establishment of the fund.
(b) Amounts included in aggregate limit on District borrowing. -- Any amounts provided to the District government through the issuance of bonds, notes, or other obligations to borrow funds pursuant to this part shall be taken into account in determining whether the amount of funds borrowed by the District of Columbia during a fiscal year exceeds the limitation on such amount provided under § 1-206.03(b).
(Apr. 17, 1995, 109 Stat. 138, Pub. L. 104-8, § 214; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-392.14.
The full faith and credit of the United States is not pledged for the payment of any principal of or interest on any bond, note, or other obligation issued by the Authority pursuant to this part. The United States is not responsible or liable for the payment of any principal of or interest on any bond, note, or other obligation issued by the Authority pursuant to this part.
(Apr. 17, 1995, 109 Stat. 139, Pub. L. 104-8, § 215; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-392.15.
