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Current through October 23, 2012
(a) The Mayor, or the CFO pursuant to § 47-351.02(c), may take the action provided for in subsection (b) of this section to protect District funds if:
(1) A financial institution fails to return a deposit upon demand or upon the termination of or pursuant to the terms of an agreement;
(2) A financial institution fails to pay a valid check, draft, or warrant issued by the Mayor, or the CFO pursuant to § 47-351.02(c);
(3) A financial institution fails to honor a request for the electronic transfer of District funds;
(4) A financial institution fails to account for a check, draft, warrant, order, deposit, certificate, or money that the District entrusts to it;
(5) A financial institution fails to return an investment under the terms of an agreement or upon the termination of an agreement;
(6) A financial institution fails to perform under the terms of an agreement involving banking business;
(7) A financial institution fails to maintain the required collateral pursuant to § 47-351.08;
(8) A court or a federal, District, or state banking regulator orders a financial institution to refrain from making payments on its liabilities;
(9) A court or a federal, District, or state banking regulator appoints a conservator or receiver for the financial institution;
(10) The Mayor, or the CFO pursuant to § 47-351.02(c), determines that the financial institution is financially unsound;
(11) A financial institution fails to comply with this subchapter; or
(12) Any other action has occurred or is impending which the Mayor, or the CFO pursuant to § 47-351.02(c), decides would place District funds in jeopardy.
(b) If the Mayor, or the CFO pursuant to § 47-351.02(c), determines that any condition under subsection (a) of this section exists, the Mayor, or the CFO pursuant to § 47-351.02(c), may, without any further action:
(1) Withdraw or demand the return of District funds immediately;
(2) Take action to seize all collateral provided under section 9;
(3) Liquidate collateral and retain proceeds in the amount equal to District funds held by the financial institution plus liquidation costs;
(4) Direct the financial institution to immediately stop performing any financial services for the District;
(5) Terminate any agreement relating to banking business;
(6) Remove the financial institution from the eligible bidder's list; or
(7) Take other action deemed necessary for the protection of District funds.
(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-351.13.
Emergency Act Amendments
See Historical and Statutory Notes following § 47-351.01.
Legislative History of Laws
For legislative history of D.C. Law 12-56, see Historical and Statutory Notes following § 47-351.01.
