1-1                                   AN ACT
 1-2     relating to certain anticipation notes for rural economic
 1-3     development.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 1431, Government Code, is amended by
 1-6     adding Section 1431.014 to read as follows:
 1-7           Sec. 1431.014.  CERTAIN NOTES FOR RURAL ECONOMIC DEVELOPMENT.
 1-8     (a)  Notwithstanding any other provision of this chapter, an issuer
 1-9     participating in a rural economic development program established
1-10     by the Texas Agricultural Finance Authority may sell to the
1-11     authority an anticipation note issued for a purpose described by
1-12     Section 1431.004(a)(1), provided that the note matures before the
1-13     30th anniversary of the date the note is issued.
1-14           (b)  Anticipation notes issued by a single issuer under this
1-15     section in an aggregate original principal amount of not more than
1-16     $500,000 are not subject to the approval requirements of Section
1-17     1431.011 or Chapter 1202.
1-18           (c)  An issuer may issue anticipation notes under this
1-19     section for the same purpose not more than once in any 12-month
1-20     period.
1-21           SECTION 2.  This Act takes effect immediately if it receives
1-22     a vote of two-thirds of all the members elected to each house, as
1-23     provided by Section 39, Article III, Texas Constitution.  If this
1-24     Act does not receive the vote necessary for immediate effect, this
1-25     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 827 passed the Senate on
         March 13, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 827 passed the House on
         May 3, 2001, by the following vote:  Yeas 146, Nays 0, one present,
         not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor