Sec. 70501. Special borrowing by the District of Columbia

486 words·~2 min read·/bill/116/hr/6800/eh/section-70501

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The Council of the District of Columbia (hereafter in this section referred to as the Council ) may by act authorize the issuance of bonds, notes, and other obligations, in amounts determined by the Chief Financial Officer of the District of Columbia to meet cash-flow needs of the District of Columbia government, for purchase by the Board of Governors of the Federal Reserve under the Municipal Liquidity Facility of the Federal Reserve or any other facility or program of the Federal Reserve or another entity of the Federal government which is established in response to the COVID–19 Pandemic. The Council may authorize the issuance of bonds, notes, or other obligations under subsection

(a)only if the issuance of such bonds, notes, and other obligations is competitive with other forms of borrowing in the financial market. Any bond, note, or other obligation issued under subsection

(a)shall, if provided in the act of the Council, be a general obligation of the District. No appropriation is required to pay— any amount (including the amount of any accrued interest or premium) obligated or expended from or pursuant to subsection

(a)for or from the sale of any bonds, notes, or other obligation under such subsection; any amount obligated or expended for the payment of principal of, interest on, or any premium for any bonds, notes, or other obligations issued under subsection (a); any amount obligated or expended pursuant to provisions made to secure any bonds, notes, or other obligations issued under subsection (a); or any amount obligated or expended pursuant to commitments, including lines of credit or costs of issuance, made or entered in connection with the issuance of any bonds, notes, or other obligations for operating or capital costs financed under subsection (a). Any bond, note, or other obligation issued under subsection

(a)may be renewed if authorized by an act of the Council. Any bonds, notes, or other obligations issued under subsection (a), including any renewal of such bonds, notes, or other obligations, shall be due and payable on such terms and conditions as are consistent with the terms and conditions of the Municipal Liquidity Facility or other facility or program referred to in subsection (a). The Council shall provide in each annual budget for the District of Columbia government sufficient funds to pay the principal of and interest on all bonds, notes, or other obligations issued under subsection

(a)of this section becoming due and payable during such fiscal year. The Mayor of the District of Columbia shall ensure that the principal of and interest on all bonds, notes, or other obligations issued under subsection

(a)are paid when due, including by paying such principal and interest from funds not otherwise legally committed. The Council may by act provide for a security interest in any District of Columbia revenues as additional security for the payment of any bond, note, or other obligation issued under subsection (a).