(c) Notwithstanding section 602(c)1), the provisions required by paragraph (6) of subsection (a) to be included in any act authorizing the issuance of general obligation bonds shall take effect on the date of the enactment of such act. (Amended, Aug. 29. 1974, 88 Stat. 793, Pub. L. 93-395, §1(4); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, §5.)

PUBLICATION OF BORROWING LEGISLATION

SEC. 463. (a) After each act of the Council of the District under section 462(a) authorizing the issuance of general obligation bonds has taken effect, the Mayor shall publish such act at least once in at least one newspaper of general circulation within the District together with a notice that such act has taken effect. Each such notice shall be in substantially the following form:

"NOTICE

"The following act of the Council of the District of Columbia (published with this notice) authorizing the issuance of general obligation bonds has taken effect. As provided in the District of Columbia Self-Government and Governmental Reorganization Act, the time within which a suit, action, or proceeding questioning the validity of such bonds may be commenced expires at the end of the twenty-day period beginning on the date of the first publication of this notice.

“Mayor.”

(b) Neither the failure to publish the notice provided for in subsection (a) nor any error in any publication of such notice shall impair the effectiveness of the act of the Council authorizing the issuance of such bonds or the validity of any bond issued pursuant to such act. (Amended, Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, §6.)

SHORT PERIOD OF LIMITATION

SEC. 464. (a) At the end of the twenty-day period beginning on the date of the first publication pursuant to section 463(a) of the notice that an act authorizing the issuance of general obligation bonds has taken effect

(1) any recital or statement of fact contained in such act or in the preamble or title of such act shall be deemed to be true for the purpose of determining the validity of the bonds authorized by such act, and the District and all others interested shall be estopped from denying any such recital or statement of fact; and

(2) such act, and all proceeding in connection with the authorization of the issuance of such bonds including any election held on the question of issuing such bonds, shall be deemed to have been duly and regularly taken, passed, and done by the District, in compliance with this Act and all other applicable laws, for the purpose of determining the validity of such act and proceedings; and no court shall have jurisdiction in any suit, action, or proceeding questioning the validity of such act

or proceedings except in a suit, action, or proceeding commenced before the end of such twenty-day period.

(b) At the end of the twenty-day period beginning on the date of the first publication pursuant to section 463(a) of the notice that an act authorizing the issuance of general obligation bonds has taken effect, no court shall have jurisdiction in any suit, action, or proceeding questioning the validity of any obligation bond issued pursuant to such act if—

(1) such general obligation bond was purchased in good faith and for fair value; and

(2) such general obligation bond contains substantially the following statement which shall bind the District of Columbia: "It is hereby certified and recited that all conditions, acts, and things required by the District of Columbia Self-Government and Governmental Reorganization Act and other applicable laws to exist, to have happened, and to have been performed precedent to and in the issuance of this bond exist, have happened, and have been performed and that the issue of bonds, of which this is one, together with all other indebtedness of the District of Columbia, is within every debt and other limit prescribed by law." (Amended, Aug. 14, 1974, 88 Stat. 458, Pub. L. 93-376, title III, §306(a); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, §7.)

ISSUANCE OF GENERAL OBLIGATION BONDS

SEC. 465. (a) After an act of the Council authorizing the issuance of general obligation bonds under section 461(a) takes effect, the Mayor may issue such general obligation bonds as authorized by such act of the Council. An issue of general obligation bonds may be all or any part of the aggregate principal amount of bonds authorized by such act.

(b) The principal amount of the general obligation bonds of each issue shall be payable in annual installments beginning not more than three years after the date of such bonds and ending not more than thirty years after such date.

(c) The general obligation bonds of each issue shall be executed by the manual or facsimile signature of such officials as may be designated to sign such bonds by the act of the Council authorizing the issuance of the bonds except that at least one such signature shall be manual. Coupons attached to the bonds shall be authenticated by the facsimile signature of the Mayor unless the Council provides otherwise. (Amended, Aug. 29, 1974, 88 Stat. 793, Pub. L. 93-395, § 1(5); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, §8.)

PUBLIC OR PRIVATE SALE

SEC. 466. (a) Except as provided in subsection (b), general obligation bonds issued under this part shall be sold at public sale upon sealed proposals after publication of a notice of such sale at least once not less than ten days prior to the date fixed for sale in a daily newspaper carrying municipal bond notices and devoted primarily to financial news or to the subject of State and municipal bonds published in the city of New York, New York, and in one or more newspapers of general circulation published in the District.

Such notice shall state, among other things, that no proposal shall be considered unless there is deposited with the District as a downpayment a certified check or cashier's check for an amount equal to at least 2 per centum of the par amount of general obligation bonds bid for, and the Mayor shall reserve the right to reject any and all bids.

(b) Any issue of general obligation bonds which is sold before October 1, 1990, 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. (Amended, Aug. 29, 1974, 88 Stat. 793, Pub. L. 93-395, § 1(6); Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97–105, § 9,); October 12, 1984, 98 Stat. 1974, Pub. L. 98-473, sec. 131(a); November -, 1989, 101 Stat. —, Public Law 101--, Sec. —.)

AUTHORITY TO CREATE SECURITY INTERESTS IN DISTRICT REVENUES

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 cre

ated by such security interest is valid, binding, and perfected with respect to any individual or legal entity having claims against the District, whether or not such individual or legal entity has notice of such lien.

(d) The fourth sentence of section 446 shall not apply to any obligation or expenditure of any District revenues to secure any general obligation bond under subsection (a). (Added, Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 10.)

Subpart 2-Short-Term Borrowing

BORROWING TO MEET APPROPRIATIONS

SEC. 471. (a) In the absence of unappropriated revenues available to meet appropriations made pursuant to section 446, the Council may by act authorize the issuance of general obligation notes. The total amount of all such general obligation notes originally issued during a fiscal year shall not exceed 2 per centum of the total appropriations for the District for such fiscal year.

(b) Any general obligation note issued under subsection (a), as authorized by an act of the Council, may be renewed. Any such note, including any renewal of such note, shall be due and payable not later than the last day of the fiscal year occurring immediately after the fiscal year during which the act authorizing the original issuance of such note takes effect.

(c) The fourth sentence of section 446 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 general obligation note issued under subsection (a). (Amended, Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 11.)

BORROWING IN ANTICIPATION OF REVENUES

SEC. 472. (a) In anticipation of the collection or receipt of revenues for a fiscal year, the Council may by act authorize the issuance of general obligation notes for such fiscal year, to be known as revenue anticipation notes.

(b) The total amount of all revenue anticipation notes issued under subsection (a) outstanding at any time during a fiscal year shall not exceed 20 per centum of the total anticipated revenue of the District for such fiscal year, as certified by the Mayor under this subsection. The Mayor shall certify, as of a date which occurs not more than fifteen days before each original issuance of such revenue anticipation notes, the total anticipated revenue of the District for such fiscal year.

(c) Any revenue anticipation note issued under subsection (a) may be renewed. Any such note, including any renewal of such note, shall be due and payable not later than the last day of the fiscal year during which the note was originally issued.

(d)(1) Notwithstanding section 602(c)(1), any act of the Council authorizing the issuance of revenue anticipation notes under subsection (a) may take effect on the date of the enactment of such act. (2) The fourth sentence of section 446 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 reve

nue anticipation note issued under subsection (a). (Amended, Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 12.)

NOTES REDEEMABLE PRIOR TO MATURITY

SEC. 473. No notes issued pursuant to this part shall be made payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be stated in the note.

SALES OF NOTES

SEC. 474. All notes issued pursuant to this part may be sold at not less than par and accured interest at private sale without previous advertising.

Subpart 3-Payment of Bonds and Notes

SPECIAL TAX

SEC. 481. (a) Any act of the Council authorizing the issuance of general obligation bonds under section 461(a) shall provide for the annual levy of a special tax or charge, if the Council determines that such tax or charge is necessary. Such tax or charge shall be levied, without limitation as to rate or amount, in amounts which together with other District revenues available and applicable will be sufficient to pay the principal of and interest on such general obligation bonds as they become due and payable. Such tax or charge will be levied and collected at the same time and in the same manner as other District taxes are levied and collected, and when collected shall be set aside in a separate debt service fund and irrevocably dedicated to the payment of such principal and interest.

(b) The Comptroller General of the United States shall make annual audits of the amounts set aside and deposited in each debt service fund pursuant to subsection (a). (Amended, Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 13.)

FULL FAITH AND CREDIT OF THE DISTRICT

SEC. 482. The full faith and credit of the District is pledged for the payment of the principal of and interest on any general obligation bond or note issued under section 461(a), section 471(a), or section 472(a), whether or not such pledge is stated in such bond or note or in the act authorizing the issuance of such bond or note. (Added, Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 14.)

PAYMENT OF THE GENERAL OBLIGATION BONDS AND NOTES

SEC. 483. (a) The Council shall provide in each annual budget for the District of Columbia government for a fiscal year adopted by the Council pursuant to section 446 sufficient funds to pay the principal of and interest on all general obligation bonds or notes issued under section 461(a), section 471(a), or section 472(a) becoming due and payable during such fiscal year.

(b) The Mayor shall insure that the principal of and interest on all general obligation bonds and notes issued under section 461(a), section 471(a), or section 472(a) are paid when due, including by