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[414]

Part of Minutes of the University of Kentucky Board of Trustees

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Section 6.03. Sale, Lease, or Other Disposition of Property. (a) The Board shall not sell or otherwise dispose of all or any part of its Property except as hereinafter provided. (b) The Board may sell, lease or dispose of Property in the ordinary course of business. (c) The Board may sell, lease or dispose of Property, not in the ordinary course of business, in any Fiscal Year provided that the aggregate fair market value, as conclusively determined by an Officer's Certificate, of such Property so disposed of in any Fiscal Year does not exceed 5% of the Book Value of Property, Plant and Equipment. (d) The Board may sell, lease or dispose of Property, not in the ordinary course of business, in excess of the amount permitted under paragraph (c) above, upon the filing with the Trustee and the State Treasurer of a report of a Consultant demonstrating that the forecasted Debt Service Coverage Ratio for each of the two (2) financial reporting periods of twelve (12) consecutive calendar months immediately succeeding the date of such action will be at least equal to 1.20 for each of such periods assuming that such action had taken place; provided, however, that if the Debt Service Coverage Ratio as forecasted by the Board exceeds 2.00, an Officer's Certificate may be substituted for the Consultant's report. (e) To the extent that the disposition of Property results in a payment to the Board of rental payments pursuant to a lease or other similar agreement or of installment sale payments pursuant to an installment sale contract or other similar agreement, such payments shall constitute Revenues. (f) To the extent that the disposition of Property results in the receipt by the Board of a one-time payment representing the proceeds of such disposition, such proceeds may be used by the Board for any Hospital purpose. (g) The Board may not transfer or dispose of any accounts receivable relating to the operation of the Hospital except in the ordinary course of business. (h) Nothing shall restrict or limit the inter-divisional or internal transfer of funds in the ordinary course of business or in the normal conducting of relationships by and between the Hospital, as an operating division of the Board. Section 6.04. Additional Covenants Concerning Rates and Charges. Notwithstanding the provisions of the Master Resolution pertaining to Govermnent Restrictions, in no event shall the Board fix, charge and collect, or cause to be fixed, charged or collected, rates, fees and charges for the use of and for the services furnished or to be furnished by the Hospital which will produce Income Available for Debt Service in an amount less than 100% of maximum annual Principal and Interest Requirements. -20-