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. 1-29 * * * * *