Q Does a community hospital have the authority to pledge a certificate of need (CON) as collateral for a loan?

A No. Section 41-7-195 clearly provides that a CON is not transferable or assignable to another entity, nor shall a project be transferred from one entity to another. This Section also provides that a CON is only valid for the entity named in the application of the CON. Furthermore, the CON should be in the name of the owner of a community hospital, i.e., the county, and the board of trustees cannot pledge a certificate of need owned by the owner as collateral for a loan. (Attorney Generalís Opinion to Hurt, Jr., May 31, 2019)