EMERGENCY BORROWING

(a) If the board declares that funds are not available to meet lawfully authorized obligations of the authority and that an emergency exists, the board may borrow money at a rate of interest not to exceed the maximum annual percentage rate allowed by law for authority obligations at the time the loan is made. (b) To secure a loan, the board may pledge: (1) revenues of the authority that are not pledged to pay bonded indebtedness of the authority; (2) authority bonds that have been authorized but not sold; or (3) revenues of the authority if the pledge is subordinate to any pledge securing outstanding bonds of the authority. (c) A loan for which bonds are pledged must mature not later than the first anniversary of the date on which the loan is made. A loan for which authority revenues are pledged must mature not later than the fifth anniversary of the date on which the loan is made. (d) The board may not spend money obtained from a loan under this section for any purpose other than the purpose for which the board declared an emergency and, if bonds are pledged to pay the loan, for any purpose other than the purposes for which the pledged bonds were authorized.