"BONDS" means all University of Kentucky Hospital Revenue Bonds of
the Board of the issue established and created by this Resolution which are
issued pursuant to a Series Resolution authorizing the issuance of a Series of
Bonds and secured by the Resolution.

           "BOOK VALUE" when used in connection with Property, Plant and
Equipment, means the value of such Property, Plant and Equipment, net of
accumulated depreciation, as it is carried on the books for the operation of
the Hospital in accordance with generally accepted accounting principles.

           "BUSINESS DAY" means any day other than (i) a Saturday or Sunday or
legal holiday or a day on which banking institutions in any city in which the
principal office of the Paying Agent is located are authorized by law or
executive order to close, or (ii) a day on which the New York Stock Exchange is
closed.

           "CHAIRMAN" means the Chairman and each and every Vice Chairman and
each and every other officer of the Board authorized to exercise the powers and
authority reposed in the Chairman of the Board.

           "CODE" means the Internal Revenue Code of 1954, as amended, and the
regulations relating thereto.

           "COMMONWEALTH" means the Commonwealth of Kentucky.

           "COMPLETION INDEBTEDNESS" means any Long-Term Indebtedness incurred
by the Board for the purpose of financing the completion of constructing or
equipping facilities for which Indebtedness has theretofore been incurred, to
the extent necessary to provide a completed and equipped facility of the type
and  scope  contemplated  at  the  time  that   such  initial  Indebtedness   was
originally incurred, and in accordance with the general plans and specifica-
tions for such facility as originally prepared in connection with the incurring
of such initial Indebtedness with only such changes as have been made in
conformance  with   the  documents  pursuant   to  which  such  Indebtedness   was
incurred.

           "CONSTRUCTION ACCOUNT" means a special account created pursuant to
Section 4.04 of the Resolution.

           "CONSULTANT" means a firm which is not, and no member, stockholder,
director, officer or employee of which is, an officer or employee of the Board,
and  which  is  a  professional  consultant  having  the  skill   and  experience
necessary to render the particular report required by a provision of the
Resolution or a Series Resolution in which such requirement appears.

           "COST"  means,  as  applied   to  a  Hospital  Project,   the  cost   of
construction,  acquisition,  renovation or equipping and all obligations and
expenses and all items of cost which are set forth in the Series Resolution
providing for the financing of such Hospital Project.



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