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Current through October 23, 2012
(a) A series of TIF bonds may be secured by a trust agreement or trust indenture between the District and a corporate trustee having trust powers, or by a secured loan agreement or other instrument giving power to a corporate trustee by means of which the District may do the following:
(1) Make and enter into any and all covenants and agreements with the trustee or the holders of the TIF bonds that the District may determine to be necessary or desirable including, without limitation, covenants and agreements as to:
(A) The application, investment, deposit, use and disposition of the proceeds of TIF bonds and the other monies, securities, and property of the District;
(B) The terms and conditions of any agreement with any other person concerning the development of the downtown area;
(C) The assignment by the District of its rights in any agreement;
(D) Terms and conditions upon which additional TIF bonds of the District may be issued;
(E) Providing for the appointment of a trustee to act on behalf of bondholders and abrogating or limiting the rights of the bondholders to appoint a trustee; and
(F) Vesting in a trustee, for the benefit of the holders of TIF bonds, or in the bondholders directly, such rights and remedies as the District shall determine;
(2) Pledge, mortgage or assign monies, agreements, property or other assets of the District, either presently in hand or to be received in the future, or both;
(3) Provide for bond insurance and letters of credit, or otherwise enhance the credit of and security for the payment of its TIF bonds; and
(4) Provide for any other matters of like or different character that in any way affect the security for or payment of the TIF bonds.
(b) TIF bonds issued pursuant to this subchapter are declared to be issued for an essential public and governmental purposes. The TIF bonds and the interest thereon and the income therefrom, and all monies pledged or available to pay or secure the payment of the bonds shall at all times be exempt from taxation by the District except for estate, inheritance, and gift taxes.
(c) The District does hereby pledge to and covenant and agree with the holders of any TIF bonds issued pursuant to this subchapter that, subject to the provisions of the financing documents, the District will not limit or alter the basis upon which available real property taxes and available sales taxes are received, allocated, applied and pledged pursuant to this subchapter; will not impair the contractual obligations of the District to fulfill the terms of any agreement made with the holders of the TIF bonds, will not in any way impair the rights or remedies of the holders, and will not modify in any way the exemptions from taxation provided for in this subchapter, until the bonds, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any suit, action or proceeding by or on behalf of the holders, are fully met and discharged. The CFO is authorized to include this pledge and agreement of the District as part of the contract with the holders of any of its bonds. This subchapter shall constitute a contract between the District and the holders of the TIF bonds authorized by this subchapter. To the extent that any acts or resolutions of the Council may be in conflict with this subchapter, this subchapter shall be controlling.
(d) It is the intention of the Council that a pledge made in respect of its TIF bonds shall be valid and binding from the time the pledge is made; that the money or property so pledged and thereafter received shall immediately be subject to the lien of the pledge without physical delivery or further act; and that the lien of the pledge shall be valid and binding as against all parties having any claim of any kind in tort, contract or otherwise against the District irrespective of whether the parties have notice. Neither the bond order, trust agreement, nor any other instrument by which a pledge is created need be recorded or filed under the provisions of the Uniform Commercial Code to be valid, binding, and effective against the parties.
(Sept. 11, 1998, D.C. Law 12-143, § 8, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.7.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
