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 10 - Reunion Square › § 2–1217.40f. Payment and security

§ 2–1217.40f. 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 bonds, income realized from the temporary investment of those proceeds, Available Tax Increment and any other taxes or fees deposited in the Reunion Square TIF Fund, income realized from the temporary investment of the monies in the Reunion Square 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 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 subordinate Class B Bonds and income realized from the temporary investment of those proceeds, the Available Tax Increment, and any other taxes or fees deposited in the Reunion Square TIF Fund, income realized from the temporary investment of the monies in the Reunion Square 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 subordinate 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 Reunion Square TIF Fund or income realized from the temporary investment of those monies shall be subordinate to:
(A) The payment of debt service on the Class A Bonds from monies deposited in the Reunion Square TIF Fund or income realized from the temporary investment of those monies; and
(B) 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. 16, 2021, D.C. Law 23-202, § 7, 67 DCR 13876.)
Emergency Legislation
For temporary (90 days) creation of this section, see § 7 of Reunion Square Tax Increment Financing Second Emergency Act of 2020 (D.C. Act 23-370, Aug. 10, 2020, 67 DCR 9689).
For temporary (90 days) creation of this section, see § 7 of Reunion Square Tax Increment Financing Emergency Act of 2020 (D.C. Act 23-250, Mar. 17, 2020, 67 DCR 3455).
Temporary Legislation
For temporary (225 days) creation of this section, see § 7 of Reunion Square Tax Increment Financing Temporary Amendment Act of 2020 (D.C. Law 23-146, Oct. 20, 2020, 67 DCR 9941).