§76o Borrowing Authority to Finance Parking Facilities

Summary

The Board can borrow up to $20,400,000 by issuing revenue bonds to the Secretary of the Treasury to pay for needed parking facilities. Those bonds can have terms agreed with the Secretary but not longer than fifty years. The Board may pay off bonds early if the bond paperwork allows it, but it may not refinance bonds it redeems. The Secretary of the Treasury must buy the Board’s bonds and may use money from public debt securities sold under chapter 31 to do so. As of October 12, 1984, those bonds bear no interest, and any unpaid interest on them is cancelled. The Treasury will keep a Kennedy Center Revenue Bond Sinking Fund to pay off the bonds when they come due. The Board must put $200,000 into the Fund each year from January 1, 1987 through January 1, 2016. The Secretary will invest the Fund in U.S. public debt securities with suitable maturities and market-based interest rates. Investment interest stays in the Fund and the Fund’s money can only be used to retire these bonds. Annual payments may be adjusted by up to plus or minus 5 percent to correct gains or losses from interest rate changes, and a final correction will be made at the end under a memorandum of understanding between the Board and the Secretary.