2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 3 - Budget and Financial Management; Borrowing; Deposit of Funds › Subchapter III-A - Financial Institutions Deposits and Investments › § 47–351.01. Definitions

§ 47–351.01. Definitions.
For the purposes of this subchapter, the term:
(1) “Bank” means an insured financial institution as defined in section 2 of the Federal Deposit Insurance Act, approved September 21, 1950 (64 Stat. 873; 12 U.S.C. § 1813), which:
(A) Accepts demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; and
(B) Is engaged in the business of making commercial loans.
(2) “Banking business” means the deposit or investment of District funds or the use of District funds for the provision of financial services.
(2A) “Collateralized mortgage obligations” shall mean securities issued by a government or quasi-governmental agency and backed by a pool of underlying home mortgages packaged and sold in the secondary market.
(3) “Community Reinvestment Act” means the Community Reinvestment Act of 1977, approved October 12, 1977 (91 Stat. 1147; 12 U.S.C. §§ 2901-2907).
(4) “Compensating balances” means collected balances held by the depository to compensate the depository for the cost of financial services rendered.
(5) “Credit union” means an institution insured by the National Credit Union Administration, and either serving designated geographical areas within the District of Columbia or serving the employees of the District.
(6) “Deposit” means District funds which are held by a financial institution subject to withdrawal upon demand by the District or upon a check or warrant of the District or the act of entrusting District funds into a financial institution.
(7) “District” means the government of the District of Columbia.
(8) “District funds” means money, currency, notes, or drafts belonging to or under the control of the District, including, but not limited to, the federal payment, federal grants, taxes, fees, special assessments, all other funds received from the federal government, and funds paid to or received by a board, agency, commission, institution, committee, or office of the District or from any other source. This does not include any assets of a pension, assets held by the District of Columbia Financial Responsibility and Management Assistance Authority, an employee deferred compensation program of the District, or an irrevocable trust established pursuant to § 1-626.11.
(9) “Eligible financial institution” means any bank or any brokerage firm registered with the United States Securities and Exchange Commission (“SEC”) or any savings and loan association, savings bank, credit union, or any subsidiary or affiliate thereof meeting the requirements to become eligible to submit a bid pursuant to § 47-351.04.
(10) “Financial services” means those services performed by a financial institution in connection with the retention of deposits, including check payment, check clearing, reconciliation of accounts, check printing, the collection and transfer of taxes and fees, night depository services, custodial services, and other services that may be necessary for the efficient management of District funds.
(11) “Home Mortgage Disclosure Act” means the Home Mortgage Disclosure Act of 1975, approved December 31, 1975 (89 Stat. 1124; 12 U.S.C. § 2801 et seq.).
(12) “Insured financial institution” or “insured institution” means a bank, savings and loan association, savings bank, credit union, or any subsidiary or affiliate thereof.
(13) “Invest” means to commit District funds in order to gain profit or interest.
(14) “Investment” means property acquired with District funds for future profit or interest.
(15) “Investment grade obligation” means securities that have a minimum rating of BBB, Baa, or BBB- from Standard and Poor’s, Moody’s Investor Service, or Fitch Investor Service rating agencies that rate the securities.
(16) “Linked deposit” means limited deposits in an insured financial institution made pursuant to an authorization from the Mayor, or CFO pursuant to § 47-351.02(c), to waive the competitive bidding requirements of the act in order to make a deposit in return for that institution’s commitment to make community development loans in low-to-moderate income areas.
(17) “Low-to-moderate income area” means a census tract in which more than 50% of the households have a median household income of less than 100% of the District’s median household income based on the most recent decennial census.
(18) “Mayor” means the Mayor of the District of Columbia.
(19) “Mortgage loan” means a loan that is secured by residential real property.
(20) “Noninsured financial institution” means an investment advisor, investment banker, investment company, investment trust, or any other company, subsidiary, or affiliate thereof designated by the Mayor, or the CFO during a control year.
(21) “Quasi-governmental corporation” means United States government-sponsored enterprises that issue investment-grade obligations. This includes, but is not limited to, banks for cooperatives, federal land banks, federal intermediate credit banks, federal farm credit banks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley District, the Small Business Administration, or any such agency or enterprise that may be created.
(22) “Savings and loan association” means an institution organized as a savings and loan association under the laws of the United States, a state, or the District, the deposits of which are insured by the Federal Deposit Insurance Corporation.
(23) “Savings bank” means an institution organized as a savings bank under the laws of the United States, a state, or the District, the deposits of which are insured by the Federal Deposit Insurance Corporation.
(24) “Small business” means a business with annual gross sales or revenues of $5 million or less.
(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933; Apr. 20, 1999, D.C. Law 12-264, § 52(a), 46 DCR 2118; June 16, 2006, D.C. Law 16-125, § 2(a), 53 DCR 4707; Mar. 25, 2009, D.C. Law 17-353, § 116, 56 DCR 1117.)
Prior Codifications
1981 Ed., § 47-351.1.
Section References
This section is referenced in § 2-1210.02, § 2-1217.105, § 8-1778.25, and § 34-1312.05.
Effect of Amendments
D.C. Law 16-125 added par. (2A).
D.C. Law 17-353 validated a previously made technical correction in the redesignation of par. (25) as par. (2A).