10-82 Issue Hospital Improvement Bonds

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into consideration the Excess Depreciation and Depreciation Shortfall both as they occur, the assumed zero per cent (-0-%) rate of return, the future values of the Excess Depreciation and the present values of the Depreciation Shortfall, shall be made in order to assure that an amount equal to the Depreciation Shortfall in each Depre- ciation Shortfall Year is on deposit in the Depre- ciation Reserve Fund prior to each such Depreci- ation Shortfall Year. If the Issuer obtains the opinion of an Independent Hospital Consultant that cost-based payors who, in the preceding Year, reimbursed the Issuer for depreciation of the Hospital Facili- ties, will no longer reimburse the Issuer for such expense, but will reimburse the Issuer for prin- cipal payments on long-term debt, and that on the basis of such change in reimbursement, it cannot reasonably be expected that the Issuer will be able to make the required deposits to the Depre- ciation Reserve Fund, then failure to make such deposits, to the extent to which the Independent Hospital Consultant opines, shall not constitute an Event of Default under the Indenture. Moneys held in the Depreciation Reserve Fund may be used from time to time for any of the following purposes: (i) During any Depreciation Short- fall Year, for the payment o6, or for the providing of funds for the payment into the Debt Service Fund of, the monthly amounts necessary for the payment of the principal of the Bonds to be retired on the next succeed- ing principal payment date. To the extent moheys held in the Depreciation Reserve Fund are so paid into the Debt Service Fund, the amount of Pledged Revenues required to be deposited in the Debt Service Fund for the payment of principal pursuant to paragraphs Second (A) or Second (B) of subsection (a) of this Section 6 shall be reduced accordingly. (ii) For the acquisition of new, or the replacement of obsolete or worn out, machin- ery, equipment, furniture, fixtures or other personal property constituting part of the Hospital Facilities, if the Issuer reasonably expects that depreciation on the property so acquired will be reimbursed under third-party medical or hospital expense reimbursement or insurance programs or agreements. (iii) For the construction of additions to or improvements, extensions, enlargements, or remodeling of Hospital Facilities. (iv) To provide working capital for the payment of curren~ expenses of operating the Hospital Facilities, if the Issuer shall undertake in writing to repay any amount withdrawn for such purpose within eleven (tl) -20-