The SMMC hospital grounds occupy approximately 35 acres, of which 19 acres are carved out to collateralize the HUD-backed 242 Hospital Mortgage. Thankfully back in November of 1999, Jack and Nancy Kern, along with a few other named “donors,” in furtherance of the charitable purposes of Fayette Memorial Hospital (FMH), and in memory of Miles L. Moss and Edward H. Moss made a magnanimous donation, via a Gift Deed, of 35.0 acres of land to FMH. It appears they also conveyed an additional 38.68acre adjacent tract to FMH via a General Warranty Deed. In February of 2002, Fayette Memorial Hospital, a Texas 501(c)(3) non-profit company, transferred both tracts of land to St. Mark’s Medical Center (SMMC), also, a 501(c)(3). Under IRS guidelines for tax exempt entities, upon dissolution, assets of the non-profit entity can only be transferred to another non-profit entity. From public records it is impossible to know if there was any consideration paid to FMH, but it is unlikely that funds were part of any consideration as they would then just have to give those funds to another non-profit entity. Should SMMC default and be forced to dissolve, they too will have to convey these assets to another 501(c)(3) entity.