Code of the District of Columbia

§ 2–1217.36i. Payment and security.

(a) Except as may be otherwise provided in this subpart, the principal of, premium, if any, and interest on, the bonds, and the payment of ongoing administrative expenses related to the bond financing shall be payable solely from proceeds received from the sale of the bonds, income realized from the temporary investment of those proceeds, receipts and revenues realized by the District from the Union Market TIF Fund, income realized from the temporary investment of those receipts and revenues prior to payment to the bond owners, and other funds that, as provided in the Financing Documents, may be made available to the District for payment of the bonds from sources other than the District, all as provided for in the Financing Documents.

(b) There is further allocated to the payment of debt service, on up to $36 million of the bonds the Available Increment, subordinate to the allocation of Available Increment to the Budgeted Reserve, as defined in the Reserve Agreement, all as more fully described in the Reserve Agreement and to the extent that the Reserve Agreement continues to apply to the Available Increment, to be used for the payment of debt service on the bonds to the extent that the revenues allocated in subsection (a) of this section are inadequate to pay debt service on the bonds. The allocation of Available Increment authorized by this subsection shall be made in compliance with all existing contractual obligations of the District with respect to the Available Increment and shall terminate on the date on which all of the bonds are paid or provided for and are no longer outstanding pursuant to their terms. The foregoing allocation of Available Increment may be increased to apply to bonds in excess of $36 million; provided, that the Development Sponsor advances the amount of any reserve required in the District's budget to support such increased allocation and any amount remaining in such reserve upon payment in full of such bonds shall be returned to Development Sponsor.

(c) Payment of the bonds shall be secured as provided in the Financing Documents and by an assignment by the District for the benefit of the bond owners of certain of its rights under the Financing Documents and Closing Documents to the trustee for the bonds pursuant to the Financing Documents.

(d) The trustee or paying agent is authorized to deposit, invest, and disburse the proceeds received from the sale of the bonds pursuant to the Financing Documents.


(Feb. 15, 2018, D.C. Law 22-58, § 6, 64 DCR 13442.)

Applicability

Section 7020 of D.C. Law 22-168 repealed section 16 of D.C. Law 22-58 removing the applicability restriction impacting this section. Therefore the creation of this section by D.C. Law 22-58 has been implemented.

Applicability of D.C. Law 22-58: § 16 of D.C. Law 22-58 provided that the creation of this section by § 6 of D.C. Law 22-58 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.