Code of the District of Columbia

§ 8–173.43. Issuance of bonds; renewals and refunds; deemed obligations of Authority; negotiable instruments; director, employer, or agent not personally liable.

(a) The Authority, pursuant to § 1-204.90(a)(6), may, to carry out the authorized purposes of the Authority:

(1) Incur debt by the issuance of revenue bonds; and

(2) Borrow or lend money to finance or assist in the financing of undertakings authorized by this chapter.

(b) The Authority may not use the proceeds of bonds issued by the Authority unless the Board:

(1) Determines that the use of the proceeds meets the requirements of this chapter and § 1-204.90; and

(2) Approves a resolution, describing the determination required by paragraph (1) of this subsection.

(c) Regardless of their form or character, bonds and other debt instruments of the Authority are negotiable instruments for all purposes of Subtitle I of Title 28, subject only to the provisions of the bonds for registration.

(d) No director, employee, or agent of the Authority shall be personally liable for any payment required to be made under any bond issued by the Authority.

(e) No notice, proceeding, consent, or approval shall be required for the issuance or performance of any bond of the Authority or the execution of any instrument relating thereto or to the security therefor, except as provided in this chapter or in guidelines issued by the Authority.

(f) The Authority may stipulate by resolution the terms for sale of its bonds in accordance with this chapter, including the following:

(1) The date a bond bears;

(2) The date a bond matures;

(3) Whether bonds are issued as serial bonds, as term bonds, or as a combination thereof;

(4) The denomination;

(5) The interest rate or rates, or variable rate or rates changing from time to time in accordance with a base or formula;

(6) The registration privileges;

(7) The medium and method for payment; and

(8) The terms of redemption.

(g) The Authority may sell its bonds at public or private sale and may determine the price for sale.

(h) A pledge of the Authority is binding from the time it is made. Any funds or property pledged are subject to the lien of a pledge without physical delivery. The lien of a pledge is binding as against parties having any tort, contract or other claim against the Authority regardless of notice. Neither a resolution nor any other instrument creating a pledge need be recorded.

(i) The signature of any officer of the Authority that appears on a bond remains valid if that person ceases to hold that office.