D.C. Code § 47-351.13

Protection of District funds at risk.

Official textus-dc/statcode.dccouncil.gov21 subsections

# (a)

The Mayor, or the CFO pursuant to § 47-351.02(c), may take the action provided for in subsection (b) of this section to protect District funds if:

# (1)

A financial institution fails to return a deposit upon demand or upon the termination of or pursuant to the terms of an agreement;

# (2)

A financial institution fails to pay a valid check, draft, or warrant issued by the Mayor, or the CFO pursuant to § 47-351.02(c);

# (3)

A financial institution fails to honor a request for the electronic transfer of District funds;

# (4)

A financial institution fails to account for a check, draft, warrant, order, deposit, certificate, or money that the District entrusts to it;

# (5)

A financial institution fails to return an investment under the terms of an agreement or upon the termination of an agreement;

# (6)

A financial institution fails to perform under the terms of an agreement involving banking business;

# (7)

A financial institution fails to maintain the required collateral pursuant to § 47-351.08;

# (8)

A court or a federal, District, or state banking regulator orders a financial institution to refrain from making payments on its liabilities;

# (9)

A court or a federal, District, or state banking regulator appoints a conservator or receiver for the financial institution;

# (10)

The Mayor, or the CFO pursuant to § 47-351.02(c), determines that the financial institution is financially unsound;

# (11)

A financial institution fails to comply with this subchapter; or

# (12)

Any other action has occurred or is impending which the Mayor, or the CFO pursuant to § 47-351.02(c), decides would place District funds in jeopardy.

# (b)

If the Mayor, or the CFO pursuant to § 47-351.02(c), determines that any condition under subsection (a) of this section exists, the Mayor, or the CFO pursuant to § 47-351.02(c), may, without any further action:

# (1)

Withdraw or demand the return of District funds immediately;

# (2)

Take action to seize all collateral provided under section 9;

# (3)

Liquidate collateral and retain proceeds in the amount equal to District funds held by the financial institution plus liquidation costs;

# (4)

Direct the financial institution to immediately stop performing any financial services for the District;

# (5)

Terminate any agreement relating to banking business;

# (6)

Remove the financial institution from the eligible bidder’s list; or

# (7)

Take other action deemed necessary for the protection of District funds.

Source: official DC Code section page (code.dccouncil.gov)

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