By Turner of Harris H.B. No. 2306
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance of refunding bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (b), Section 2, Chapter 503, Acts of
1-5 the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
1-6 Statutes), is amended to read as follows:
1-7 (b) An issuer shall have the right to deposit, or cause to
1-8 be deposited to the State Treasurer of the State of Texas a sum of
1-9 money equal to the principal amount of the bonds, notes, and other
1-10 evidences of indebtedness which it proposes to refund plus the
1-11 amount of interest which will accrue thereon calculated to the date
1-12 on which it is to become due or on which it may be redeemed,
1-13 together with the amount of contract premium if any, required for
1-14 redemption; and concurrently with such deposit shall pay to the
1-15 State Treasurer for his services and to reimburse him for his
1-16 expenses in performing his duties under this Act a sum of money
1-17 equivalent to one-twentieth (1/20) of one per cent (1%) of the
1-18 principal amount of said bonds and one-eighth (1/8) of one per cent
1-19 (1%) of the interest to accrue on all of said underlying
1-20 obligations, and an additional amount of money sufficient to pay
1-21 the charges of the bank or trust company at which the principal and
1-22 interest of said underlying obligations are payable for its
1-23 services in paying such principal and interest. The fees paid to
2-1 the State Treasurer for his services and expenses under this Act
2-2 shall not exceed $1,000. The State Treasurer may rely on a
2-3 certificate by such issuer <city> as to the amount of the charges
2-4 made by such bank or trust company. At the same time such issuer
2-5 <city> shall deliver to the State Treasurer a certified copy of the
2-6 ordinance, order, or resolution authorizing said underlying
2-7 obligations, or a certified excerpt therefrom, showing clearly the
2-8 amounts and the date or dates on which interest is due on such
2-9 underlying obligations, the date when the principal becomes subject
2-10 to redemption, and the name and address of the bank or trust
2-11 company at which such principal and interest must be paid. It
2-12 shall be the duty of the State Treasurer to accept such deposits,
2-13 payments, and instruments, and safely to keep and use such money
2-14 for the purposes set forth in this Act and for no other purpose,
2-15 and no part of such money except that in payment for his services
2-16 and to reimburse his expenses in performing such services shall be
2-17 used by or for the State of Texas or for any creditor of the State
2-18 of Texas, nor shall such money be commingled with any other money.
2-19 SECTION 2. The importance of this legislation and the
2-20 crowded condition of the calendars on both houses create an
2-21 emergency and an imperative public necessity that the
2-22 constitutional rule requiring bills to be read on three several
2-23 days in each house be suspended, and this rule is hereby suspended,
2-24 and that this Act take effect and be in force from and after its
2-25 passage, and it is so enacted.