Tex. Health & Safety Code Section 265.0177
Authority to Borrow Money

(a)

After approval by resolution of the commissioners court of the county and the governing body of the municipality that appointed the board, the board of managers may, on behalf of the hospital, borrow money from a federally insured lending institution for a purpose described by Section 265.0179 (Permissible Uses of Loan Proceeds). The board may execute a loan agreement or promissory note as evidence of the obligation to repay the loan.

(b)

The board of managers may borrow money in an amount it considers advisable, subject to a rate of interest, security, and other terms it considers advisable. The loan shall mature not later than the 30th anniversary of the date on which the loan is made.

(c)

Before entering into a loan under this section, the board of managers must determine that there will be sufficient money available from revenues generated by the hospital to pay the loan when the loan becomes due.

(d)

The commissioners court of the county and the governing body of the municipality that appointed the board of managers must approve the terms of a loan agreement by written resolution.

(e)

Chapter 1202 (Examination and Registration of Public Securities), Government Code, does not apply to a promissory note or any other instrument evidencing a loan under this section.
Added by Acts 2003, 78th Leg., ch. 719, Sec. 1, eff. June 20, 2003.

Source: Section 265.0177 — Authority to Borrow Money, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­265.­htm#265.­0177 (accessed Apr. 29, 2024).

265.002
County and Any Two or More Municipalities 265.011
Establishment of Hospital by Commissioners Court and Municipal Governing Body 265.012
Financing 265.013
Board of Managers 265.014
Chairman 265.015
Contracts 265.016
Financial Statement 265.017
Issuance of Revenue Bonds 265.018
Hospital Property 265.019
Use of Earnings or Assets for Private Purposes Prohibited 265.020
Applicability 265.021
Ownership and Control Designated 265.022
Board of Managers of Hospital Controlled by County 265.023
Board of Managers of Hospital Controlled by Municipality 265.024
Terms 265.025
Tax 265.026
Tuberculosis Control 265.031
Creation of Board 265.032
Appointment of Board 265.033
Officers 265.034
Authority of Board 265.035
Suits 265.036
Compensation 265.037
Hospital Facilities 265.038
Contracts for Hospital Services 265.039
Funds 265.040
Authority to Issue Revenue Bonds 265.041
Terms of Bonds 265.042
Pledge of Security 265.043
Sale and Use of Proceeds 265.044
Parity and Subordinate Lien Bonds 265.045
Notice 265.046
Refunding Bonds 265.047
Examination, Approval, and Registration of Bonds 265.048
Legal Investments 265.049
Charges for Services and Facilities 265.050
Depository 265.051
Investment of Funds 265.052
Eminent Domain 265.071
Official Action 265.072
Petition and Election 265.0171
Repayment of Bonds 265.0172
Additional Security for Bonds 265.0173
Maturity 265.0174
Bonds Not Payable from Taxes 265.0175
Sale of Bonds 265.0176
Refunding Bonds 265.0177
Authority to Borrow Money 265.0178
Pledge of Security 265.0179
Permissible Uses of Loan Proceeds 265.0181
Transfer of Property
Green check means up to date. Up to date

Accessed:
Apr. 29, 2024

§ 265.0177’s source at texas​.gov