District Of Columbia § 47-3401.01 - Intermediate-term advances for liquidation of deficit.
Full text of District Of Columbia D.C. Code § 47-3401.01 — Intermediate-term advances for liquidation of deficit., with citation guidance and answers to common questions.
§ 47-3401.01. Intermediate-term advances for liquidation of deficit.
47-3401.01If 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.
The Secretary shall make an advance under this section if
The Mayor delivers to the Secretary the following instruments, in form and substance satisfactory to the Secretary:
A financing agreement in which the Mayor agrees to procedures for requisitioning advances;
A requisition for an advance under this section; and
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 by the District government to the Secretary if the Secretary determines that such a bond is satisfactory;
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;
The District government delivers to the Secretary:
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
A schedule setting out the anticipated timing and amounts of requisitions for advances under this section;
The Authority certifies to the Secretary that:
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;
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;
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;
Such advance will not adversely affect the financial stability of the District government; and
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;
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 if, after reasonable inquiry, the Inspector General concurs in the findings of such audit;
The Secretary determines that:
There is reasonable assurance of reimbursement for the requisitioned advance; and
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
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.
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.
Paragraph (1) of this subsection applies if—
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
The Authority concurs in the Mayor’s certification under subparagraph (A) of this paragraph.
Notwithstanding paragraph (1) of this subsection, the aggregate amount of all advances made under this section shall not be greater than $300,000,000.
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.
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.
[Reserved].
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.
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%.
Each advance made under this section shall be on such other terms and conditions, including repayment schedule, as the Secretary determines to be appropriate.
As provided in 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.
Annotations
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.
The “Balanced Budget Act of 1997,” referred to in (b)(2), is Pub. L. 105-33, 111 Stat. 251, effective August 5, 1997.
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 47-3401.01
What does D.C. Code § 47-3401.01 cover?
Section 47-3401.01 ("Intermediate-term advances for liquidation of deficit.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
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Sources & Verification
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