Texas Health and Safety Code
§ 223.028 — SECURITY FOR BONDS
HS § 223.028Title 4. HEALTH FACILITIES · Part A. FINANCING, CONSTRUCTING, REGULATING, AND INSPECTING · Ch. 223. HOSPITAL PROJECT FINANCING ACT · Art. C. HOSPITAL PROJECT BONDS
Statute text
View on source(a)Bonds issued under this chapter may be secured by a trust agreement between the issuer and a trust company or bank having the powers of a trust company in this state.
(b)A trust agreement may pledge or assign lease income, contract payments, fees, or other charges to be received from a nonprofit organization. The governing body of the issuer may secure the bonds additionally by a mortgage, a deed of trust lien, or other security interest on a designated hospital project vesting in the trustee the power to sell the hospital project for the payment of the indebtedness, the power to operate the hospital project, and any other power for the further security of the bonds.
(c)The trust agreement may:
(1)evidence a pledge of all or any part of the revenue of the issuer from the ownership, operation, lease, use, mortgage, or sale of a hospital project for the payment of principal of, any redemption premium for, and interest on the bonds when due and payable;
(2)provide for the creation and maintenance of reserves;
(3)set forth the rights and remedies of the bondholders and of the trustee;
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Legislative history
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.