Sec. 265.043.  SALE AND USE OF PROCEEDS.  (a)  The revenue bonds may be sold at public or private sale at a price and under terms determined by the directors.  The bonds may bear interest at a rate not to exceed the maximum rate provided by Chapter 1204, Government Code.
(b)  Proceeds from the sale of the bonds may be used, if the use is authorized in the proceedings authorizing issuance of the bonds, to:
(1)  pay interest on the bonds during the construction of hospital facilities acquired through issuance of the bonds; 
(2)  pay operation and maintenance expense of the hospital facilities to the extent and for the time specified in the proceedings; 
(3)  create reserves for the payment of principal of and interest on the bonds;  or
(4)  invest, until needed, to the extent and in the manner provided in the bond resolution or a trust indenture executed in connection with the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.259, eff. Sept. 1, 2001.