2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 34 - Miscellaneous Provisions › § 47–3401.01. Intermediate-term advances for liquidation of deficit

§ 47–3401.01. Intermediate-term advances for liquidation of deficit.
(a) In general. — If the conditions in subsection (b) of this section are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated and to the extent provided in advance in annual appropriations acts, for the purpose of assisting the District government in liquidating the outstanding accumulated operating deficit of the general fund of the District government existing as of September 30, 1997.
(b) Conditions to making any intermediate-term advance. — The Secretary shall make an advance under this section if
(1) The Mayor delivers to the Secretary the following instruments, in form and substance satisfactory to the Secretary:
(A) A financing agreement in which the Mayor agrees to procedures for requisitioning advances;
(B) A requisition for an advance under this section; and
(C) A promissory note evidencing the District government’s obligation to reimburse the Treasury for the requisitioned advance, which note may be a general obligation bond issued under § 1-204.61 by the District government to the Secretary if the Secretary determines that such a bond is satisfactory;
(2) The date on which the requisitioned advance is requested to be made is not later than 3 years from the date of enactment of the Balanced Budget Act of 1997;
(3) The District government delivers to the Secretary:
(A) Evidence demonstrating to the satisfaction of the Secretary that, at the time of the Mayor’s requisition for an advance, the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government’s need for financing to accomplish the purpose described in subsection (a) of this section; and
(B) A schedule setting out the anticipated timing and amounts of requisitions for advances under this section;
(4) The Authority certifies to the Secretary that:
(A) There is an approved financial plan and budget in effect under the District of Columbia Financial Responsibility and Management Assistance Act of 1995 for the fiscal year in which the requisition is to be made;
(B) At the time that the Mayor’s requisition for an advance is delivered to the Secretary, the District government is in compliance with the approved financial plan and budget;
(C) Both the receipt of funds from such advance and the reimbursement of Treasury for such advance are consistent with the approved financial plan and budget for the year;
(D) Such advance will not adversely affect the financial stability of the District government; and
(E) At the time that the Mayor’s requisition for an advance is delivered to the Secretary, the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government’s need for financing to accomplish the purpose described in subsection (a) of this section;
(5) The Inspector General of the District of Columbia certifies to the Secretary the information described in subparagraphs (A) through (D) of paragraph (4), and in making this certification, the Inspector General may rely upon an audit conducted by an outside auditor engaged by the Inspector General under § 1-301.115a(a)(4) if, after reasonable inquiry, the Inspector General concurs in the findings of such audit;
(6) The Secretary determines that:
(A) There is reasonable assurance of reimbursement for the requisitioned advance; and
(B) The debt owed by the District government to the Treasury on account of the requisitioned advance will not be subordinate to any other debt owed by the District or to any other claims against the District; and
(7) The Secretary receives from such persons as the Secretary determines to be appropriate such additional certifications and opinions relating to such matters as the Secretary determines to be appropriate.
(c) Amount of any intermediate-term advance. —
(1) In general. — Except as provided in paragraph (3) of this subsection, if the conditions in paragraph (2) of this subsection are satisfied, each advance made under this section shall be in the amount designated by the Mayor in the Mayor’s requisition for such advance.
(2) Conditions applicable to designated amount. — Paragraph (1) of this subsection applies if—
(A) The Mayor certifies that the amount designated in the Mayor’s requisition for such advance is needed to accomplish the purpose described in subsection (a) of this section within 30 days of the time that the Mayor’s requisition is delivered to the Secretary; and
(B) The Authority concurs in the Mayor’s certification under subparagraph (A) of this paragraph.
(3) Maximum amount. — Notwithstanding paragraph (1) of this subsection, the aggregate amount of all advances made under this section shall not be greater than $300,000,000.
(d) Maturity of any intermediate-term advance. —
(1) In general. — Except as provided in paragraphs (2) and (3) of this subsection, each advance made under this section shall mature on the date designated by the Mayor in the Mayor’s requisition for such advance.
(2) Latest permissible maturity date. — Notwithstanding paragraph (1) of this subsection, the maturity date for any advance made under this section shall not be later than 10 years from the date on which the first advance under this section is made.
(3) [Reserved].
(4) Secretary’s right to require early reimbursement. — Notwithstanding paragraph (1) of this subsection, if the Secretary determines, at any time while any advance made under this section has not been fully reimbursed, that the District is able to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms, in the judgment of the Secretary, to refinance all or a portion of the unpaid balance of such advance in the public credit markets or elsewhere without adversely affecting the financial stability of the District government, the Secretary may require reimbursement for all or a portion of the unpaid balance of such advance at any time after the Secretary makes the determination.
(e) Interest rate. — Each advance made under this section shall bear interest at an annual rate equal to a rate determined by the Secretary at the time that the Secretary makes such advance taking into consideration the prevailing yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the repayment schedule of such advance, plus 1/8 of 1%.
(f) Other terms and conditions. — Each advance made under this section shall be on such other terms and conditions, including repayment schedule, as the Secretary determines to be appropriate.
(g) Deposit of advances. — As provided in § 47-392.04(b) advances made under this section for the account of the District government shall be deposited by the Secretary into an escrow account held by the Authority.
(July 26, 1939, 53 Stat. 1118, ch. 367, title VI, § 602; as added Aug. 5, 1997, 111 Stat. 765, Pub. L. 105-33, § 11402(2); Apr. 20, 1999, D.C. Law 12-264, § 52(v), 46 DCR 2118; Apr. 12, 2000, D.C. Law 13-91, §§ 156(d), 160(b)(1), 47 DCR 520.)
Prior Codifications
1981 Ed., § 47-3401.1.
Section References
This section is referenced in § 1-301.115a.
Effect of Amendments
Section 156 (d) of Laws 13-91 validated a previously made technical amendment in subsecs. (4)(b) and (c)(2)(B).
Section 160 (b) of D.C. Law 13-91 made a technical correction.
Cross References
Budget and financial management, existing provisions and procedure and practice preserved, borrowing and spending limitations, see § 1-206.03.
Budget and financial management, suspension of activities upon payment of Authority obligations, see § 47-391.07.
District government, financial plan and budget, control periods described, initiation under certain sections, see § 47-392.09.
District government, financial plan and budget, deposit of annual federal contribution with Authority, exception, see § 47-392.05.
District government, financial plan and budget, restrictions on borrowing during control year, application to certain sections, see § 47-392.04.
District government, financial plan and budget, special rules for Fiscal Year 1996, prohibition against allocation of advances if certification in effect, see § 47-392.08.
Procurement, office of the Inspector General, powers, duty to provide certification, see § 2-302.08.
References in Text
The “Balanced Budget Act of 1997,” referred to in (b)(2), is Pub. L. 105-33, 111 Stat. 251, effective August 5, 1997.
The “District of Columbia Financial Responsibility and Management Assistance Act of 1995,” referred to in (b)(4)(A), is Pub. L. 104-8, 109 Stat. 97, approved April 17, 1995.