1-1     By:  Counts (Senate Sponsor - Haywood)                H.B. No. 2658
 1-2           (In the Senate - Received from the House April 23, 2001;
 1-3     April 24, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the authority of Knox County Hospital District to enter
1-10     into a loan agreement.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Chapter 241, Acts of the 60th Legislature, Regular
1-13     Session, 1967, is amended by adding Section 6A to read as follows:
1-14           Sec. 6A. (a)  The board of directors may borrow money at a
1-15     rate of interest determined to be appropriate by the board of
1-16     directors.
1-17           (b)  To secure a loan, the board of directors may pledge:
1-18                 (1)  the revenues of the district that are not pledged
1-19     to pay the bonded indebtedness of the district; or
1-20                 (2)  property acquired with the loan proceeds that is
1-21     not pledged to pay the bonded indebtedness of the district.
1-22           (c)  A loan authorized by this section shall mature not later
1-23     than the fifth anniversary of the date on which the loan was made.
1-24           SECTION 2.  This Act takes effect immediately if it receives
1-25     a vote of two-thirds of all the members elected to each house, as
1-26     provided by Section 39, Article III, Texas Constitution.  If this
1-27     Act does not receive the vote necessary for immediate effect, this
1-28     Act takes effect September 1, 2001.
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