(a) A local governmental entity may borrow money for purposes of a hospital owned or operated by the entity at a rate not to exceed the maximum annual percentage rate allowed by the law at the time the loan is made for similar obligations of the entity.
(b) To secure a loan under this section, a local governmental entity may pledge:
(1) revenue from the hospital owned or operated by the entity that is not pledged to pay the entity's bonded indebtedness; or
(2) tax revenue to be collected by the local governmental entity during the 12-month period following the date of the pledge that is not pledged to pay the principal of or interest on bonds.
(c) A loan authorized by this section must mature:
(1) not later than the first anniversary of the date the loan is made, if taxes are pledged to repay the loan; and
(2) not later than the fifth anniversary of the date the loan is made, if hospital revenue is pledged to repay the loan.