By Gutierrez                                          H.B. No. 2988
         77R9897 JJT-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the execution of bonds and the sale of loans by the
 1-3     Veterans' Land Board.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 161.116(b), Natural Resources Code, is
 1-6     amended to read as follows:
 1-7           (b)  The bonds shall be signed  and executed as the board
 1-8     provides in the resolution or order authorizing the issuance of [by
 1-9     the chairman and the executive secretary of the board and the seal
1-10     of the board shall be impressed on the bonds.  In addition, the
1-11     bonds shall be signed by the governor and attested by the Secretary
1-12     of State with the state seal impressed on] the bonds.
1-13           SECTION 2. Section 162.005, Natural Resources Code, is
1-14     amended to read as follows:
1-15           Sec. 162.005.  SALE OF LOANS. (a)  Notwithstanding any other
1-16     provision of this chapter, the board may sell at public or private
1-17     sale, with or without public bidding, any or all of the loans in
1-18     the fund.  Proceeds from the sale shall be deposited in the fund
1-19     and otherwise applied in the manner provided by this chapter,
1-20     except that at the direction of the board the sale proceeds may be
1-21     used by the board, together with other available money, to
1-22     discharge, pay, or redeem, in whole or in part, outstanding bonds
1-23     issued by the board under this chapter.
1-24           (b)  In the resolution of the board that authorizes the sale
 2-1     of any or all of the loans in the fund, the board may also
 2-2     authorize one or more designated officers or employees of the board
 2-3     to act on the board's behalf in:
 2-4                 (1)  conducting the sale of the loans; and
 2-5                 (2)  determining:
 2-6                       (A)  the purchaser of the loans; and
 2-7                       (B)  the terms of the purchase agreement.
 2-8           (c)  A resolution that authorizes an officer or employee of
 2-9     the board to act on the board's behalf as provided by Subsection
2-10     (b) must establish the maximum principal amount of the loans to be
2-11     sold and the minimum sales price of the loans to be sold, expressed
2-12     as a percentage of the principal amount of the loans.
2-13           SECTION 3. Section 162.036(b), Natural Resources Code, is
2-14     amended to read as follows:
2-15           (b)  The bonds shall be signed and executed as the board
2-16     provides in the resolution or order authorizing the issuance of [by
2-17     the chairman and the executive secretary of the board and the seal
2-18     of the board shall be impressed on the bonds.  In addition, the
2-19     bonds shall be signed by the governor and attested by the secretary
2-20     of state with the state seal impressed on] the bonds.
2-21           SECTION 4. This Act takes effect September 1, 2001.