Tex.
Spec. Dist. Local Laws Code Section 1096.201
Revenue Bonds
(a)
The district may issue revenue bonds to provide for any district purposes. The bonds must be authorized by a board resolution adopted by a majority vote of a quorum of the board.(b)
Revenue bonds must be payable from and secured by a pledge of all or part of the revenue derived from:(1)
the operation of the district’s hospitals; and(2)
any other revenue resulting from the ownership of the hospital properties.(c)
Revenue bonds may be additionally secured by a mortgage or deed of trust lien on real property of the district or by a chattel mortgage on the district’s personal property, or by both.(d)
The board may issue:(1)
bonds that are a junior lien on the district’s net revenue or property, unless prohibited by the bond resolution or trust indenture; and(2)
parity bonds under conditions specified in the bond resolution or trust indenture.(e)
A bond issued under this subchapter must contain the provision: “The holder hereof shall never have the right to demand payment thereof out of money raised or to be raised by taxation.”
Source:
Section 1096.201 — Revenue Bonds, https://statutes.capitol.texas.gov/Docs/SD/htm/SD.1096.htm#1096.201 (accessed Jun. 5, 2024).
