2023 District of Columbia Code › Title 2 - Government Administration › Chapter 12 - Business and Economic Development › Subchapter IX - Tax Increment Financing › Part B - Identified Projects › Subpart 9 - Rhode Island Avenue Project › § 2–1217.39f. Payment and security

§ 2–1217.39f. Payment and security.
(a) For the Class A Bonds.
(1) Except as may be otherwise provided in this subpart, the principal of, premium, if any, and interest on, the Class A 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 Class A Bonds, income realized from the temporary investment of those proceeds, the Available Tax Increment and any other taxes or fees deposited in the RIA TIF Fund, income realized from the temporary investment of the monies in the RIA TIF Fund prior to payment to the Class A Bondholders, and other funds that, as provided in the Financing Documents, may be made available to the District for payment of the Class A Bonds from sources other than the District, all as provided for in the Financing Documents
(2) There is further allocated to the payment of debt service on the Class A 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 Class A Bonds to the extent that the revenues allocated in paragraph (1) of this subsection are inadequate to pay debt service on the Class A 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 Class A Bonds are paid or provided for and are no longer outstanding pursuant to their terms.
(3) Payment of the Class A Bonds shall be secured as provided in the Financing Documents and by an assignment by the District for the benefit of the Class A Bondholders of certain of its rights under the Financing Documents and Closing Documents to the trustee for the Class A Bonds pursuant to the Financing Documents.
(4) The trustee or paying agent is authorized to deposit, invest, and disburse the proceeds received from the sale of the Class A Bonds pursuant to the Financing Documents.
(b) For the Class B Bonds:
(1) Except as may be otherwise provided in this subpart, the principal of, premium, if any, and interest on, the Class B Bonds, and the payment of ongoing administrative expenses related to the Class B Bond financing shall be payable solely from proceeds received from the sale of the Class B Bonds and income realized from the temporary investment of those proceeds, the Available Tax Increment and any other taxes of fees deposited in the RIA TIF Fund, income realized from the temporary investment of the monies in the RIA TIF Fund prior to payment to the Class B Bondholders, and other funds that, as provided in the Financing Documents, may be made available to the District for payment of the Class B Bonds from sources other than the District, all as provided for in the Financing Documents.
(2) Payment of debt service on the Class B Bonds from monies deposited in the RIA TIF Fund or income realized from the temporary investment of those monies shall be subordinate to (i) the payment of debt service on the Class A Bonds from monies deposited in the RIA TIF Fund or income realized from the temporary investment of those monies and (ii) any reasonable reserves required by the District.
(3) Payment of the Class B Bonds shall be secured as provided in the Financing Documents and by an assignment by the District for the benefit of the Class B Bondholders of certain of its rights under the Financing Documents and Closing Documents to the trustee for the Class B Bonds pursuant to the Financing Documents.
(4) The trustee or paying agent is authorized to deposit, invest, and disburse the proceeds received from the sale of the Class B Bonds pursuant to the Financing Documents.
(Mar. 22, 2019, D.C. Law 22-263, § 7, 66 DCR 1378.)
Applicability
Applicability of D.C. Law 22-263: § 7165 of D.C. Law 23-16 repealed § 16 of D.C. Law 22-263. Therefore the creation of this section by D.C. Law 22-263 has been implemented.
Applicability of D.C. Law 22-263: § 16 of D.C. Law 22-263 provided that the creation of this section by § 7 of D.C. Law 22-263 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.
Emergency Legislation
For temporary (90 days) repeal of applicability provision of D.C. Law 22-263, see § 7165 of Fiscal Year 2020 Budget Support Congressional Review Emergency Act of 2019 (D.C. Act 23-112, Sept. 4, 2019, 66 DCR 11964).
For temporary (90 days) repeal of applicability provision of D.C. Law 22-263, see § 7165 of Fiscal Year 2020 Budget Support Emergency Act of 2019 (D.C. Act 23-91, July 22, 2019, 66 DCR 8497).