TL;DR Version: Public Trust Hospital wants to borrow money due to COVID-19. Trust Indenture says it can. Does it need City's approval also? Long Version: I represent a hospital operated by a public trust. The Trust authority approved to participate in the Advance Payment Program offered through COVID-19 relief programs. Essentially, the hospital could received up to 125% of its medicare receivables it would have received over a six month period. The "loan" is interest free as long as it is paid back within a prescribed time period. The Board decided not to place the funds in the general operating account. After all, this money is intended only to supplement income if COVID-19 causes a drop in our normal operating expense. To open an account, the bank is requesting a resolution and a certificate of beneficial owner (i.e., the City). My question is as follows: Under 60 O.S. 178.13, the City does not have to approve any "indebtedness issued by" the hospital if the total amount of the debt does not exceed 5% of either total indebtedness or total assets. This loan is more than 5%. So, 60 O.S. 176 requires 2/3rd vote of both the Trust Board and the Beneficiary's Board. But, the Attorney General's opinion seems to suggest that a Trust can act without Beneficiary approval if the Beneficiary grants the Trust, in the Trust Indenture, the power to take on debt. The Hospital's Trust Indenture grants it this power. So, can the Hospital legally apply for the debt without the City's approval or must it get the City's approval first? -- *Corry S. Kendall* Attorney at Law 216 W. Commerce Altus, OK 73521 corry.kendall@swoklaw.com Phone: (580) 482-3355 Fax: (580) 954-0060 www.swoklaw.com ****Please note the new email address: corry.kendall@swoklaw.com <corry.kendall@swoklaw.com>****