Current through October 23, 2012
(a) The Authority may stipulate by resolution the terms for sale of its bonds in accordance with this chapter, including the following:
(1) The date a note or bond bears;
(2) The date a bond or note matures, provided that notes shall not mature later than 10 years from the date of original issuance and bonds shall not mature later than 34 years from the date of original issuance;
(3) Whether bonds are issued as serial bonds, as term bonds, or a combination of the two;
(4) The denomination;
(5) Any interest rate or rates, or variable rate or rates changing from time to time, or premium or discount applicable;
(6) The registration privileges;
(7) The medium and method for payment; and
(8) The terms of redemption.
(b) The Authority may sell its bonds at public or private sale and may determine the price for sale.
(c) A resolution authorizing the sale of bonds may contain any of the following provisions, in which case these provisions shall be made part of the contract with holders of the bonds:
(1) The custody, security, expenditure, or application of proceeds of the sale of bonds or notes of the Authority ("proceeds"), a pledge of the proceeds to secure payment, and the rank or priority of the pledge, subject to preexisting agreements with holders of the bonds;
(2) A pledge of Authority revenues to secure payment and the rank or priority of the pledge, subject to preexisting agreements with holders of the bonds;
(3) A pledge of assets of the Authority, including mortgages and obligations securing mortgages, to secure payment, and the rank or priority of the pledge, subject to preexisting agreements with holders of the bonds;
(4) The proposed use of gross income from any mortgages owned by the Authority and payment of principal of mortgages owned by the Authority;
(5) The proposed use of reserves or sinking funds;
(6) The proposed use of proceeds from the sale of bonds or notes and a pledge of proceeds to secure payment;
(7) Any limitations on the issuance of bonds or notes, including terms of issuance and security, and the refunding of outstanding or other bonds;
(8) Procedures for amendment or abrogation of a contract with holders of the bonds, the amount of bonds or notes, the holders of which must consent to the amendment, and the manner in which consent may be given;
(9) Any vesting in a trustee property, power and duties, which may include the power and duties of a trustee appointed by holders of the bonds;
(10) Limitations or abrogations of the right of holders of the bonds to appoint a trustee;
(11) A defining of the nature of default in the obligations of the Authority to the holders of the bonds and providing the rights and remedies of holders of the bonds in the event of default, including the right to the appointment of a receiver, in accordance with the general laws of the District and this chapter; and
(12) Any other provisions of like or different character which affect the security of holders of the bonds.
(d) A pledge of the Authority is binding from the time it is made. Any funds, or property pledged, are subject to the lien of a pledge without physical delivery. The lien of a pledge is binding as against parties having any tort, contract, or other claim against the Authority regardless of notice. Neither the resolution nor any other instrument creating a pledge need be recorded.
(e) The signature of any officer of the Authority which appears on a bond remains valid if that person ceases to hold office.
(f) The Authority may secure bonds by a trust indenture between the Authority and a corporate trustee which has trust company powers within the District.
(g) A trust indenture of the Authority may contain provisions for protecting and enforcing the rights and remedies of holders of the bonds in accordance with the provisions of the resolution authorizing the sale of bonds.
(h) Subject to preexisting agreements with the holders of the bonds or notes, the Authority may purchase its own bonds which may then be cancelled. The price the Authority pays in purchasing its own bonds cannot exceed the following limits:
(1) If the bonds are redeemable, the price cannot exceed the redemption price then applicable plus accrued interest to the next interest payment; or
(2) If the bonds are not redeemable, the price cannot exceed the redemption price applicable on the first date after the purchase upon which the bonds or notes become subject to redemption plus accrued interest to that date.
(i) The Authority may establish special or reserve funds in furtherance of its authority under this chapter. Notwithstanding subsections (a) and (b) of this section, § 10-1202.13, and other applicable District law, and subject to agreements with holders of the bonds, the Authority shall manage its own funds, and may invest funds not required for disbursement in a manner the Authority determines to be prudent.
(j) The bonds of the Authority are legal instruments in which public officers and public bodies of the District, insurance companies, insurance company associations, and other persons carrying on an insurance business, banks, bankers, banking institutions including savings and loan associations, building and loan associations, trust companies, savings banks, savings associations, investment companies, and other persons carrying on a banking business, administrators, guardians, executors, trustees, and other fiduciaries, and other persons authorized to invest in bonds or in other obligations of the District, may legally invest funds, including capital, in their control. The bonds are also securities which legally may be deposited with and received by public officers and public bodies of the District or any agency of the District for any purpose for which the deposit of bonds or other obligations of the District is authorized by law.
(k) Obligations issued under the provisions of this chapter do not constitute an obligation of the District, but are payable solely from the revenues or assets of the Authority. Each obligation issued under this chapter must contain on its face a statement that the Authority is not obligated to pay principal or interest except from the revenues or assets pledged and that neither the faith and credit nor the taxing power of the District is pledged to the payment of the principal or interest on an obligation.
(l) All property, assets, and income of the Authority shall be exempt from District taxation and from any special assessments imposed by the District.
(m) Bonds issued by the Authority, their transfer, and the interest on the bonds shall be exempt from District taxation, except for estate, inheritance, and gift taxation.
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(Sept. 28, 1994, D.C. Law 10-188, § 211, 41 DCR 5333; Aug. 12, 1998, D.C. Law 12-142, § 2(h), 45 DCR 4826; Mar. 3, 2010, D.C. Law 18-111, § 2081(o), 57 DCR 181.)
1981 Ed., § 9-812.
Effect of Amendments
D.C. Law 18-111 rewrote subsecs. (l) and (m), which had read as follows:
"(l) Assets and income of the Authority shall be exempt from District taxation.
"(m) Income from bonds issued by the Authority shall be exempt from District taxation except for estate and gift taxes."
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2081(o) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 2081(o) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Legislative History of Laws
For legislative history of D.C. Law 10-188, see Historical and Statutory Notes following § 10-1201.01.
For legislative history of D.C. Law 12-142, see Historical and Statutory Notes following § 10-1202.08a.
For Law 18-111, see notes following § 10-303.
For effective date of D.C. Law 12-142, see Historical and Statutory Notes following § 10-1202.01.