32-89 Hospital Improvement Revenue Bonds $36 mil

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requirement made pursuant to Subsection (k) of Section 16 of the Bond Legislation as amended by Section 15 of this First Supplemental Bond Legislation. "Bond Year" means, with respect to the Bonds of any Series, the annual period provided for the computation of the Rebate Amount for the Bonds of such Series under Section 148(f) of the Code. "Capitalization" means the sum of (i) the aggregate principal amount of all outstanding Long-Term Hospital Debt of the Operator, plus (ii) the unrestricted Fund Balance of the Operator. "Capitalization Test" means the Trustee shall have received an 'Officer's Certificate demonstrating, based upon audited financial state- ments for the two most recent Fiscal Years of the Operator for which audited financial statements are available, that immediately after the proposed transaction, the aggregate principal amount of all outstanding Long-Term Hospital Debt (exclusive of Guaranties) will not exceed sixty percent of the aggregate Capitalization of the Operator. "Capitalized Interest" means that portion of the proceeds of any Hospital Debt or any other funds (other than reserves for Hospital Debt) that are held in trust and are restricted to be used to pay inter- est due or to become due on Hospital Debt, including funds held in con- nection with an advance or cross-over refunding. "Completion Hospital Debt" means any Hospital Debt incurred by the Operator for the purpose of financing the completion of the con- structing or equipping of Hospital Facilities for the construction or equipping of which Hospital Debt has theretofore been incurred in accor- dance with the provisions of the Indenture, to the extent necessary to provide a completed and equipped facility of the type and scope contem- plated at the time of the initial funding of such Hospital Facilities. "Certificate of Award for the Series One Bonds" means the Certificate authorized by Section $(i) hereof. "Certificate of Award for the Series Two Bonds" means the Certificate authorized by Section 9(i) hereof. "Code" means the Internal Revenue Code of 1986, as amended. "Excess Earnings" means, with respect to all Bonds issued pursuant to the Indenture, an amount equal to the excess of: (i) the aggregate amount earned from the date of issuance of such Bonds on all nonpurpose investments in which gross proceeds of such Bonds are invested (other than investments attributable to an excess described in this clause), over (ii) the amount that would have been earned if such nonpurpose investments were invested at a rate equal to the yield on such Bonds. Excess Earnings shall be determined in accordance with Section 148(f) of the Code and the applicable Treasury Regulations (final, temporary or proPOsed) thereunder. As used in the definition of Excess Earnings, the terms "gross proceeds, "nonpurpose investments" and -4-