1. (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. (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. (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. (3) A financial institution fails to honor a request for the electronic transfer of District funds;
   4. (4) A financial institution fails to account for a check, draft, warrant, order, deposit, certificate, or money that the District entrusts to it;
   5. (5) A financial institution fails to return an investment under the terms of an agreement or upon the termination of an agreement;
   6. (6) A financial institution fails to perform under the terms of an agreement involving banking business;
   7. (7) A financial institution fails to maintain the required collateral pursuant to § 47-351.08;
   8. (8) A court or a federal, District, or state banking regulator orders a financial institution to refrain from making payments on its liabilities;
   9. (9) A court or a federal, District, or state banking regulator appoints a conservator or receiver for the financial institution;
   10. (10) The Mayor, or the CFO pursuant to § 47-351.02(c), determines that the financial institution is financially unsound;
   11. (11) A financial institution fails to comply with this subchapter; or
   12. (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.

2. (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. (1) Withdraw or demand the return of District funds immediately;
   2. (2) Take action to seize all collateral provided under section 9;
   3. (3) Liquidate collateral and retain proceeds in the amount equal to District funds held by the financial institution plus liquidation costs;
   4. (4) Direct the financial institution to immediately stop performing any financial services for the District;
   5. (5) Terminate any agreement relating to banking business;
   6. (6) Remove the financial institution from the eligible bidder’s list; or
   7. (7) Take other action deemed necessary for the protection of District funds.

History

Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933

Emergency Legislation

See Historical and Statutory Notes following § 47-351.01.

Prior Codifications

1981 Ed., § 47-351.13.

Section References

This section is referenced in § 47-351.04.