§76o Borrowing Authority to Finance Parking Facilities

Summary

The Board can sell revenue bonds to pay for needed parking at the Center, but the total face value cannot be more than $20,400,000. The bonds can run for up to fifty years and can be paid off early if the Board chooses, but any bonds paid off early cannot be refinanced. The Secretary of the Treasury must buy those bonds and may use regular Treasury public-debt operations to do so. As of October 12, 1984, those bonds bear no interest and any past unpaid interest does not have to be paid. The Treasury will hold a special sinking fund called the Kennedy Center Revenue Bond Sinking Fund. The Board must pay $200,000 into that Fund each year from January 1, 1987 through January 1, 2016. The Fund’s money will be invested in suitable U.S. public debt securities and the investment interest stays in the Fund. The Fund can only be used to retire the Board’s parking bonds. Annual payments may be adjusted up or down by up to 5% to correct investment gains or losses, and a final settlement will be made at the end under a written agreement between the Board and the Secretary.