Page:United States Statutes at Large Volume 95.djvu/1522

 95 STAT. 1496

PUBLIC LAW 97-105—DEC. 23, 1981

SEC. 9. Section 466 of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 47-246) is amended— (1) by striking out the title of the section and inserting in lieu thereof "PUBLIC OR PRIVATE SALE";

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(2) by striking out "SEC. 466. All" in the first sentence and inserting in lieu thereof "SEC. 466. (a) Except as provided in subsection (b),"; and (3) by adding at the end the following new subsection: "(b) Any issue of general obligation bonds which is sold before October 1, 1984, and which is additionally secured by a security interest created in District revenues under section 467(a) may be sold at either a public sale under subsection (a) or at a private sale on a negotiated basis in such manner as the Mayor may determine to be in the public interest.". SEC. 10. Subpart 1 of part E of the District of Columbia SelfGovernment and Governmental Reorganization Act (D.C. Code, sec. 47-241 et seq.) is amended by inserting after section 466 the following new section: "AUTHORITY TO CREATE SECURITY INTERESTS IN DISTRICT REVENUES

D.C. Code '^'^"^^^-

"SEC. 467. (a) An act of the Council authorizing the issuance of general obligation bonds under section 461(a) may create a security interest in any District revenues as additional security for the payment of the bonds authorized by such act. (b) Any such act creating a security interest in District revenues may contain provisions (which may be part of the contract with the holders of such bonds)— "(1) describing the particular District revenues which are subject to such security interest; "(2) creating a reasonably required debt service reserve fund or any other special fund; "(3) authorizing the Mayor of the District to execute a trust indenture securing the bonds; "(4) vesting in the trustee under such a trust indenture such properties, rights, powers, and duties in trust as may be necessary, convenient, or desirable; '^5) authorizing the Mayor of the District to enter into and amend agreements concerning (A) the custody, collection, use, disposition, security, investment, and payment of the proceeds of the bonds and the District revenues which are subject to such security interest, and (B) the doing of any act (or the refraining from doing any act) that the District would have the right to do in the absence of such an agreement; "(6) prescribing the remedies of the holders of the bonds in the event of a default; and "(7) authorizing the Mayor of the District to take any other actions in connection with the issuance, sale, delivery, security, and payment of the bonds. "(c) Notwithstanding article 9 of title 28 of the District of Columbia Code, any security interest in District revenues created under subsection (a) shall be valid, binding, and perfected from the time such security interest is created, with or without the physical delivery of any funds or any other property and with or without any further action. Such security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to such security interest is recorded or filed. The lien created by such

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