D.C. Code § 47-351.13: Protection of District funds at risk.

(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.