By Counts                                             H.B. No. 2658
         77R9033 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of Knox County Hospital District to enter
 1-3     into a loan agreement.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 241, Acts of the 60th Legislature, Regular
 1-6     Session, 1967, is amended by adding Section 6A to read as follows:
 1-7           Sec. 6A. (a)  The board of directors may borrow money at a
 1-8     rate of interest determined to be appropriate by the board of
 1-9     directors.
1-10           (b)  To secure a loan, the board of directors may pledge:
1-11                 (1)  the revenues of the district that are not pledged
1-12     to pay the bonded indebtedness of the district; or
1-13                 (2)  property acquired with the loan proceeds that is
1-14     not pledged to pay the bonded indebtedness of the district.
1-15           (c)  A loan authorized by this section shall mature not later
1-16     than the fifth anniversary of the date on which the loan was made.
1-17           SECTION 2.  This Act takes effect immediately if it receives
1-18     a vote of two-thirds of all the members elected to each house, as
1-19     provided by Section 39, Article III, Texas Constitution.  If this
1-20     Act does not receive the vote necessary for immediate effect, this
1-21     Act takes effect September 1, 2001.