Texas Special District Local Laws Code 1114.205 – Promissory Notes
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(a) The board may execute and deliver promissory notes to purchase, construct, acquire, repair, equip, or renovate buildings and improvements for hospital purposes.
(b) The notes may be secured by:
(1) a mortgage or deed of trust lien on all or part of the district property; or
(2) a pledge of revenues derived from the operation of the district’s hospital.
Terms Used In Texas Special District Local Laws Code 1114.205
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Texas Government Code 311.005
(c) The notes may be paid from:
(1) taxes imposed by the district, not to exceed the tax rate approved by the voters; and
(2) the revenues derived from the operation of the district’s hospital.
(d) The total amount of revenues pledged under Subsection (b)(2) may not exceed 50 percent of the estimated revenues for the period the pledge is effective.