D.C. Code § 1-204.75

Current through codified legislation effective September 18, 2024

Section 1-204.75 - Bond anticipation notes

(a)Authorizing issuance. -

(1)In general. - In anticipation of the issuance of general obligation bonds, the Council may by act authorize the issuance of general obligation notes to be known as bond anticipation notes in accordance with this section.

(2)Purposes; permitting issuance of general obligation bonds to cover indebtedness. - The proceeds of bond anticipation notes issued under this section shall be used for the purposes for which general obligation bonds may be issued under § 1-204.61, and such notes shall constitute indebtedness which may be refunded through the issuance of general obligation bonds under such section.

(b)Maximum annual debt service amount. - The act of the Council authorizing the issuance of bond anticipation notes shall set forth for the bonds anticipated by such notes an estimated maximum annual debt service amount based on an estimated schedule of annual principal payments and an estimated schedule of annual interest payments (based on an estimated maximum average annual interest rate for such bonds over a period of 30 years from the earlier of the date of issuance of the notes or the date of original issuance of prior notes in anticipation of those bonds). Such estimated maximum annual debt service amount as estimated at the time of issuance of the original bond anticipation notes shall be included in the calculation required by § 1-206.03(b) while such notes or renewal notes are outstanding.

(c)Permitted outstanding duration. - Any bond anticipation note, including any renewal note, shall be due and payable not later than the last day of the third fiscal year following the fiscal year during which the note was originally issued.

(d)General authority of Council. - If provided for in [an] Act of the Council authorizing such an issue of bond anticipation notes, bond anticipation notes may be issued in succession, in such amounts, at such times, and bearing interest rates within the permitted maximum authorized by such Act.

(e)Effective date of authorization acts; payments not subject to appropriation. -

(1)Effective date. - Notwithstanding § 1-206.02(c)(1), any act of the Council authorizing the renewal of bond anticipation notes under subsection (c) [subsection (d)] or the issuance of general obligation bonds under § 1-204.61(a) to refund any bond anticipation notes shall take effect -

(A) if such act is enacted during a control year (as defined in § 47-393(4) ), on the date of approval by the District of Columbia Financial Responsibility and Management Assistance Authority; or

(B) if such act is enacted during any other year, on the date of enactment of such act.

(2)Payment not subject to appropriation. - Section 1-204.46(c) shall not apply to any amount obligated or expended by the District for the payment of the principal of, interest on, or redemption premium for any bond anticipation note issued under this section.

D.C. Code § 1-204.75

Dec. 24, 1973, 87 Stat. 806, Pub. L. 93-198, title IV, § 475; as added Aug. 5, 1997, 111 Stat. 771, Pub. L. 105-33, § 11507(a); July 25, 2013, D.C. Law 19-321, § 2(h), 60 DCR 1724.

General Obligation Bonds Authorized: D.C. Law 14-214, effective March 25, 2003, authorized the issuance of general obligation bonds and general obligation bond anticipation notes of the District of Columbia for the purposes of financing certain capital projects and the refunding of certain capital indebtedness of the District of Columbia during fiscal years 2002-2007.

Applicability of D.C. Law 19-321: Section 3 of D.C. Law 19-321 provided that section 2 of the act shall apply as of January 1, 2014.

D.C. Law 19-321 was declared invalid by the United States District Court for the District of Columbia in a memorandum opinion dated May 19, 2014, Civil Action No. 2014-0655. The court held that although the Council of the District of Columbia, the Mayor, and United States District Court for the District of Columbia are powerless to grant to the residents of the District of Columbia full budget autonomy, the United States Congress and the President of the United States are empowered to do so; and concluded that the Budget Autonomy Act was unlawful. See Council of the Dist. of Columbia v. Gray, 42 F. Supp. 3d 134, 2014 U.S. Dist. LEXIS 68055 (2014).

On May 27, 2015, the United States Court of Appeals for the District of Columbia Circuit issued Order No. 14-7067, vacating the lower court's judgment, dismissing the appeal, and remanding the case to the District Court with instructions to remand the case to the Superior Court of the District of Columbia. See Council of the Dist. of Columbia v. Bowser, 2015 U.S. App. LEXIS 8881 (2015). The amendments contained in D.C. Law 19-321 are codified in this section.