The Laws of Texas, 1931-1933 [Volume 28] Page: 287 of 2,111
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FORTY-SECOND LEGISLATURE-THIRD CALLED SESSION. 59
same shall be applied to the reduction of the secured debt as
rapidly as may be practicable to be done.
6-In case of a loan to a district having an expectancy of
commercial income, but at the time not having such demonstrated
income in an amount adequate to discharge the loan as
the same may mature, such district may pledge the commercial
income then in expectancy, as provided in subdivision 5 (next
foregoing), and, in addition thereto, or as an alternative therefor,
if so required, it may give into pledge, with power of sale
conforming to the usages of business, its unsold bonds in a par
sum not to exceed the amount of the loan plus ten per centum
thereof, in which event the rate of interest upon the loan shall
not exceed six (6%) per centum per annum. In case of such
pledge of bonds it shall not be required that the district impound
bonds.
7-To evidence loans not to be effected by sale of bonds of
such districts, as may be done under the provisions of subdivision
(a) of this Section, the borrowing district may execute and
deliver to the lender its certificates of indebtedness, notes or
obligations, for the payment whereof the district may pledge its
full faith and credit, to the same effect as the same may be
pledged by bonds of such districts.
8-It is the intent hereof that this Act be liberally and sympathetically
construed to the end that districts within the provisions
hereof, save as to matters specifically limited herein,
shall have the most full and flexible powers to comply with all
such conditions percedent to the loans contemplated hereby as
may be required of the borrower by the lender.
SECTION 4. In case bonds be impounded, and, or, pledged to
secure any loan made to a district, and in case, and to the extent,
that such loan is repaid, and as repaid, from commercial income
of the District, a comparable proportion of the bonds so impounded,
or so pledged, shall be withdrawn, cancelled and retired.
SECTION 5. Nothing in this Act contained shall be held to
suspend, impair or diminish the powers given to all Water Control
and Improvement Districts by the provisions of Section 7,
of Chapter 280 of the Acts of the 41st Legislature of Texas,
Regular Session; nor, to impair any implied, necessary or incident
powers which such districts lawfully may enjoy, save to
the extent such powers specifically are limited by this Act. No
prior or subsequent act of the Legislature shall be held to alter,
diminish or impair any provision of this Act, save upon condition
that there be specific repeal of one or more of the provisions
of this Act.
SECTION 6. There exists an imperative public emergency and
necessity that this Act be in force from and after the day of its
enactment. Various public works which are being provided by
Water Control and Improvement Districts are in a state of
partial completion, or there exists urgent public need that these
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Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1931-1933 [Volume 28], book, 1933; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth17293/m1/287/: accessed May 6, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .