consecutive  calendar  months  out  of   the  most  recent   period  of
          eighteen (18) full consecutive calendar months preceding the date of
          incurrence of such Short-Term Indebtedness for which the Financial
          Statements  have  been   reported  upon  by   the  Auditor   or  by  an
          independent certified public accountant or firm of certified public
          accountants chosen by the Board provided, however, that the Board
          shall be free from all such Short-Term Indebtedness, except for a
          principal amount equal to 3% of said Total Operating Revenues, for a
          period of twenty (20) consecutive calendar days in each Fiscal Year
          of the Board; provided, further, that such amount may be increased
          from 3% to 5% of said Total Operating Revenues if at least 40% of
          such additional Short-Term Indebtedness has been incurred to off-set
          an anticipated temporary delay in the receipt of funds due from
          third-party payors; provided, however, that in no event shall the
          principal amount of Short-Term Indebtedness incurred pursuant to
          this paragraph and amounts withdrawn from the Depreciation Reserve
          Fund pursuant to the Master Resolution outstanding at any time
          exceed 15% of Total Operating Revenues for the period described
          above.

          Section 6.02. Restrictions on Guaranties; Calculation of Principal
                          and Interest Requirements on Guaranties.

           The Board agrees that it will not enter into, or become liable in
respect of, any Guaranty unless (i) such Guaranty shall provide that no
acceleration of the Indebtedness guaranteed is permitted as long as principal
and interest are paid on a current basis as provided for by such Indebtedness,
(ii) there shall be delivered to the Trustee and the State Treasurer an
Officer's Certificate showing the income available for debt service of the
person whose Indebtedness is being guaranteed (determined in a manner as nearly
as practicable like Income Available for Debt Service hereunder) for the most
recent period of twelve (12) full consecutive calendar months out of the most
recent period of eighteen (18) full consecutive calendar months preceding the
date of issuance of such Guaranty, and (iii) compliance is shown for the
incurrence of Additional Indebtedness in accordance with the requirements of
Section 6.01 hereof.

           When   calculating   the  principal   and   interest   requirements   on
Guaranties, if the percentage derived from dividing the amount mentioned in the
preceding paragraph by the total of the debt service requirement (determined in
a manner as nearly as practicable like principal and interest requirements
hereunder) of the Person whose indebtedness is being guaranteed and all other
Indebtedness of such person then outstanding is (A) less than 1.00; (B) between
1.00 and 1.25; (C) between 1.26 and 1.34 or (D) in excess of 1.34, then for the
purpose of making any Principal and Interest Requirements calculation in the
case of (A) 100%, (B) 75%, (C) 50% and (D) 25% of the annual debt service on
the  indebtedness  being  guaranteed   shall  be  added   to  the  computation   of
Principal and Interest Requirements.     Notwithstanding the foregoing provisions
of this paragraph, at the time of execution of any Guaranty, for the purpose of
determining compliance with any test for the incurrence of Indebtedness, 100%
of the annual debt service on the Indebtedness proposed to be guaranteed shall
be added to the computation of Principal and Interest Requirements.

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