Texas Statutes (Last Updated: January 4, 2014) |
HEALTH AND SAFETY CODE |
Title 4. HEALTH FACILITIES |
Subtitle F. POWERS AND DUTIES OF HOSPITALS |
Chapter 315. AUTHORITY TO BORROW MONEY FOR PUBLIC HOSPITALS |
Sec. 315.002. AUTHORITY TO BORROW MONEY FOR PUBLIC HOSPITAL; SECURITY
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(a) A local governmental entity may borrow money for purposes of a hospital owned or operated by the entity at a rate not to exceed the maximum annual percentage rate allowed by the law at the time the loan is made for similar obligations of the entity.
(b) To secure a loan under this section, a local governmental entity may pledge:
(1) revenue from the hospital owned or operated by the entity that is not pledged to pay the entity's bonded indebtedness; or
(2) tax revenue to be collected by the local governmental entity during the 12-month period following the date of the pledge that is not pledged to pay the principal of or interest on bonds.
(c) A loan authorized by this section must mature:
(1) not later than the first anniversary of the date the loan is made, if taxes are pledged to repay the loan; and
(2) not later than the fifth anniversary of the date the loan is made, if hospital revenue is pledged to repay the loan.