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 II-D - Income Tax Secured Bonds › § 47–340.26. Definitions

§ 47–340.26. Definitions.
For the purposes of this subchapter, the term:
(1) “Additional Bonds” means additional District of Columbia Income Tax Secured Bonds that may be issued pursuant to § 1-204.90 and this subchapter and in satisfaction of the tests for additional bonds established in the Financing Documents, with a parity claim with the initial series of District of Columbia Income Tax Secured Bonds on the Available Tax Revenues.
(2) “Authorized Delegate” means the Chief Financial Officer, the Treasurer, or any Deputy Mayor in the executive office of the Mayor to whom the Mayor has delegated any of the Mayor’s functions under this subchapter pursuant to § 1-204.22(6).
(3) “Available Business Franchise Tax Revenues” means the revenues resulting from the imposition of the Business Franchise Tax, including penalty and interest charges.
(4) “Available Income Tax Revenues” means the revenues resulting from the imposition of the Income Tax, including penalty and interest charges.
(5) “Available Tax Revenues” means the sum of the Available Business Franchise Tax Revenues and Available Income Tax Revenues generated and to be generated in any fiscal year of the District.
(6) “Bond Counsel” means a firm of attorneys designated as bond counsel from time to time by the Chief Financial Officer.
(7) “Bonds” means the initial series of District of Columbia Income Tax Secured Bonds and Additional Bonds, notes, or other obligations, including refunding bonds, notes, bond anticipation notes, and other obligations, in one or more series, and Subordinated Bonds, authorized to be issued pursuant to § 1-204.90 and this subchapter.
(8) “Business Franchise Tax” means the franchise tax imposed on corporations and unincorporated businesses pursuant to §§ 47-1807.02, 47-1808.03, and 47-1817.06.
(9) “Capital Projects” means the payment of the cost of acquiring, undertaking, or financing capital projects authorized by § 1-204.90 for general governmental and enterprise purposes, and New Communities Initiative Projects, including reimbursing amounts temporarily advanced from the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District.
(10) “Chief Financial Officer” means the Chief Financial Officer of the District of Columbia established by § 1-204.24a(a).
(11) “Closing Documents” means all documents and agreements, other than Financing Documents, that may be necessary or appropriate to issue, sell, and deliver the bonds, and includes agreements, certificates, letters, opinions, forms, receipts, and other similar instruments.
(12) “Collection Agent” means the financial institution acting as the trustee or as agent for the trustee and chosen by the Chief Financial Officer to receive Available Tax Revenues, to deposit those payments into the Income Tax Secured Bond Fund, to transfer the amounts to the trustee sufficient to pay debt service on the bonds, and to otherwise comply with the Financing Documents.
(13) “Financing Documents” means the documents, other than Closing Documents, that relate to the financing or refinancing of transactions to be effected through the issuance, sale, and delivery of any series of the bonds, including contracts or agreements for an escrow agent, trustee, Collection Agent, registrar, Paying Agent, underwriting, legal services, accounting, financial advisory services, bond insurance or other credit enhancement or liquidity agreements, printing, or placement of any investment or obligation or program of investment, including any offering document, contract based on interest rate, currency, cash flow, or other basis, including Hedge Agreements, and any required supplements to any such documents.
(14) “Hedge Agreement” means any financial arrangement that is a cap, floor, or collar; forward rate; future rate; swap, which swap may be based on an amount equal to either a principal amount or a notional principal amount relating to all or a portion of the principal amount of a series of bonds; asset, index, price, or market-linked transaction or agreement; other interest rate exchange or rate protection transaction agreement; other similar transactions, however designated; any combination thereof; any option with respect thereto; or any similar arrangement, which is executed by the District for purposes of debt management, including managing interest rate fluctuations on bonds, but not for purposes of speculation.
(15) “Income Tax” means the income tax imposed on individuals by § 47-1806.03.
(16) “Income Tax Secured Bond Fund” means the Income Tax Secured Bond Fund established by § 47-340.27.
(16A) “New Communities Initiative Projects” means the projects approved in accordance with § 42-2812.03(e).
(17) “Outstanding Debt” means any tax-supported indebtedness of the District outstanding at any time, including any outstanding general obligation bonds and bond anticipation notes issued by the District, and certificates of participation issued on behalf of the District, excluding debt from the District’s Deed Tax Revenue Bonds issued before May 1, 2013, but, unless expressly authorized by Council resolution, the term “Outstanding Debt” shall not include tax increment financing and payment in lieu of taxation debt.
(18) “Parity Bonds” means, collectively, the initial series of District of Columbia Income Tax Secured Bonds and any Additional Bonds.
(19) “Paying Agent” means the District or any bank, trust company, or national banking association designated to serve in that capacity by the Chief Financial Officer, and may be the trustee.
(20) “Registrar” means the District or any bank, trust company, or national banking association designated to serve in that capacity by the Chief Financial Officer, and may be the trustee.
(21) “Subordinated Bonds” means any bonds, notes, or other obligations, including refunding bonds, notes, bond anticipation notes, and other obligation, the payment of debt service thereon which is subordinate to the Parity Bonds and which are not equally and ratably secured with the Parity Bonds by the Available Tax Revenues and other funds in and to be in the Income Tax Secured Bond Fund.
(22) “Treasurer” means the District of Columbia Treasurer established by § 1-204.24a(c)(3).
(23) “Trustee” means the trustee for the bond owners selected by the Chief Financial Officer for one or more series of bonds.
(Oct. 22, 2008, D.C. Law 17-254, § 2(b), 55 DCR 9275; Nov. 16, 2011, D.C. Law 19-39, § 2(a), 58 DCR 8471; June 26, 2014, D.C. Law 20-117, § 10(a), 61 DCR 2032.)
Section References
This section is referenced in § 42-2812.03.
Effect of Amendments
D.C. Law 19-39, in par. (9), substituted “undertaking, or financing” for “undertaking or financing” and deleted “, and the refunding of Outstanding Debt” following “account of the District”.
The 2014 amendment by D.C. Law 20-117 added “and New Communities Initiative Projects” in (9); added (16A); and added “excluding debt from the District’s Deed Tax Revenue Bonds issued before May 1, 2013” in (17).
Emergency Legislation
For temporary (90 day) addition of sections, see §§ 2 and 3 of Fiscal Year 2011 Income Tax Secured Revenue Refunding Bond Issuance Emergency Approval Act of 2010 (D.C. Act 18-606, November 17, 2010, 57 DCR 11052).
For temporary (90 day) addition of section, see § 2 of Fiscal Year 2011 Income Tax Secured Revenue Bond and General Obligation Bond Issuance Emergency Approval Act of 2010 (D.C. Act 18-607, November 17, 2010, 57 DCR 11054).
For temporary (90 day) amendment of section, see § 2(a) of Income Tax Secured Bond Authorization Emergency Act of 2011 (D.C. Act 19-145, August 9, 2011, 58 DCR 6823).
For temporary (90 day) amendment of section, see § 2(a) of Income Tax Secured Bond Authorization Congressional Review Emergency Act of 2011 (D.C. Act 19-216, October 31, 2011, 58 DCR 9348).
Temporary Legislation
Sections 2 and 3 of D.C. Law 18-307 added sections to read as follows: “Sec. 2. Pursuant to and in accordance with Subchapter II-D of Chapter 3 of Title 47 of the District of Columbia Official Code (’Subchapter II-D’), the Council approves the issuance and sale of income tax secured revenue bonds in an aggregate principal amount not to exceed $70 million to refund certain outstanding income tax secured revenue bonds of the District (‘Outstanding Bonds’), plus pay all costs related to structuring, issuing, securing, marketing, delivering, and maintaining the bonds issued pursuant to this act, including, without limitation, capitalized interest, underwriting fees, discounts and expenses, rating agency fees, legal fees, accounting fees, financial advisory fees, trustee and paying agent fees, collection agent fees, bond insurance and other credit enhancement fees, liquidity enhancement fees, swap termination fees, printing costs and expenses, costs of refunding and repayment of the Outstanding Bonds, and all other costs incurred by the District pursuant to the financing documents related to the bonds.
“Sec. 3. Pursuant to and in accordance with Subchapter II-D and other applicable law, the Council approves the execution and delivery by the Mayor, or the Chief Financial Officer, as applicable, on behalf of the District, of any agreement, document, contract, and instrument, including any amendment of or supplement to any such agreement, document, contract, or instrument, in connection with the issuance, sale, and delivery of the income tax secured revenue bonds pursuant to Subchapter II-D.”
Section 5(b) of D.C. Law 18-307 provided that the act shall expire after 225 days of its having taken effect.
Section 2 of D.C. Law 18-308 added a section to read as follows: “Sec. 2. Pursuant to and in accordance with the Income Tax Secured Bond Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254; D.C. Official Code § 47-340.26 et seq.) (‘Income Tax Bond Act’), the Council approves the issuance and sale of income tax secured revenue bonds in an aggregate principal amount not to exceed $340 million to fund certain capital projects listed in section 4, plus the costs and expenses authorized by the Income Tax Bond Act, including, but not limited to, reimbursing amounts temporarily advanced from the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District, plus an amount equal to all costs related to structuring, issuing, securing, marketing, delivering, and maintaining the bonds issued pursuant to this act, including, without limitation, capitalized interest, underwriting fees, discounts and expenses, rating agency fees, legal fees, accounting fees, financial advisory fees, trustee and paying agent fees, collection agent fees, bond insurance and other credit enhancement fees, liquidity enhancement fees, swap termination fees, printing costs and expenses, redemption premiums and other costs of redemption, and all other costs incurred by the District pursuant to the financing documents related to the bonds.”
Section 8(b) of D.C. Law 18-308 provided that the act shall expire after 225 days of its having taken effect.
Editor's Notes
Applicability of D.C. Law 20-117: Section 18 of D.C. Law 20-117 provided that the act shall apply as of October 1, 2013.
Delegation of Authority
Delegation of Authority Under the Income Tax Secured Bond Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254, D.C. Official Code §§ 47-340.26-36), see Mayor’s Order 2009-30, March 18, 2009 ( 56 DCR 6766).
Delegation of Authority Under the Income Tax Secured Bond Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254; D.C. Official Code §§ 47-340.26—47-340.36), see Mayor’s Order 2011-159, September 20, 2011 ( 58 DCR 8413).