By: Junell H.B. No. 1367 73R5918 LJR-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to agreements and provisions contained in resolutions and 1-3 mortgages for the issuance of bonds for certain industrial 1-4 development corporations and to demonstrations of financial 1-5 assurance for those projects. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Section 25(e), Development Corporation Act of 1-8 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to 1-9 read as follows: 1-10 (e) The principal of and interest on any bonds issued by the 1-11 corporation shall be secured by a pledge of the revenues and 1-12 receipts derived by the corporation from the lease or sale of the 1-13 project so financed or from the loan made by the corporation with 1-14 respect to the project so financed or refinanced and may be secured 1-15 by a mortgage covering all or any part of such project, including 1-16 any enlargements of and additions to such project thereafter made. 1-17 The resolution under which the bonds are authorized to be issued 1-18 and any such mortgage may contain any agreements and provisions 1-19 respecting the maintenance of the project covered thereby, the 1-20 fixing and collection of rents, purchase price payments or loan 1-21 payments, the creation and maintenance of special funds from such 1-22 revenues and the rights and remedies available in the event of 1-23 default, all as the board of directors shall deem advisable and not 1-24 in conflict with the provisions hereof. The resolution under which 2-1 the bonds are authorized to be issued and the mortgage may contain 2-2 any agreements and provisions for satisfying the financial 2-3 assurance requirements applicable to a project for which a permit 2-4 is required under Chapter 361, Health and Safety Code, or Chapter 2-5 27, Water Code, including those relating to construction, proper 2-6 operation, liability coverage, emergency response capability, well 2-7 plugging, closure, and postclosure care. Evidence of the passage 2-8 of a resolution by a governing body approving or agreeing to 2-9 approve the issuance of bonds for the purpose of satisfying the 2-10 financial assurance requirements applicable to such a project is an 2-11 adequate demonstration that sufficient financial resources will be 2-12 available to comply with all existing financial assurance 2-13 requirements. Each pledge, agreement, and mortgage made for the 2-14 benefit or security of any of the bonds of the corporation shall 2-15 continue effective until the principal of and interest on the bonds 2-16 for the benefit for which the same were made have been fully paid. 2-17 SECTION 2. The importance of this legislation and the 2-18 crowded condition of the calendars in both houses create an 2-19 emergency and an imperative public necessity that the 2-20 constitutional rule requiring bills to be read on three several 2-21 days in each house be suspended, and this rule is hereby suspended, 2-22 and that this Act take effect and be in force from and after its 2-23 passage, and it is so enacted.