10-82 Issue Hospital Improvement Bonds

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(1) 'Net Income Available for Debt Service' means, for any Year, the Issuer's net income from operations for such Year plus (A) interest, depreciation and amortization expense, (B) unrestricted investment income, (C) the pro- ceeds of business interruption insurance (to the extent not included in the determination of net income), and (D) Average Unrestricted Gifts (as defined hereinbelow), for such Year, all as deter- mined in accordance with generally accepted ac- counting principles. As used in clause (D) above, "Average Unrestricted Gifts" for any Year m~ans the amount determined by (i) listing the unre- stricted gifts, grants, bequests, donations and other contributions received by the Issuer for the Hospital Facilities during such Year and during each of the four Years preceding that Year, (ii) eliminating the Years for which the aggregate amounts shown as received were highest and lowest, respectively, and (iii) averaging the amounts shown as receix~ed for the remaining three Years. (2) 'Aggregate Annual Hospital Debt Service' means, for any Year, the sum of payments of principal (including any mandatory sinking fund ~equirements) of and interest and premium, if any, on the Bonds and any Hospital Debt (as defined hereinbelow), required to be made during such Year, to the extent such payments are not paid from the proceeds of Bonds or of Hospital Debt. As used in this subsection (e)(2), 'Hospital Debt' means (a) any obligation of the Issuer incurred for the Hospital Facilities which is renewable, at the option of the Issuer, for a period ending after, or which is payable more than, one year from the date of the incurrence thereof or which ms payable on demand and which is shown, under generally accepted accounting principles, on the balance sheet of the Issuer as a liability, ex- cluding the Bonds, (b) any agreement entered into by the Issuer for the Hospital Facilities having a specified term of more than one year and uuder which the Issuer is obligated to make payments, a portion of which are payments of principal and a portion of which are payments of interest on unpaid principal, (c) all obligations having a specified term of more than o'ne year and secured by a mortgage or other lien on Hospital property whether or not the obligation is assumed by the Issuer, (d) all guaranties, endorsements (other than for collection or deposit) or other contin- gent liabilities entered into or incurred by the Issuer in connection with its operation of tl~e Hospinal Facilities, with a term of one year or more or of unspecified term, to purchase or to otherwise acquire or become liable for,the obli- gation of another whether or not reflected on the Issuer' s balance sheet, and (e) ally obligation entered into or incurred by the Issuer in connec- tion with its operation of the Hospital Facilities for rent except under true leaSes; provided, however, that if more than one instrument repre- sents the same Debt it shall be counted only once, and no transactions by the Issuer bet%~een funds of the Issuer shall constitute Debt."