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.