"CREDIT FACILITY AGREEMENT" means an irrevocable letter of credit,
insurance policy, guaranty or surety bond providing for the payment of or
guarantying the payment of principal and purchase price of and interest on
Bonds when due.

           "DEBT SERVICE COVERAGE RATIO" means for any period of time the ratio
determined by dividing the Income Available for Debt Service by the Principal
and Interest Requirements.

           "DEBT SERVICE RESERVE ACCOUNT" means that account created as a part
of the Bond Fund by a Series Resolution.

           "DEFEASANCE  OBLIGATIONS"  means   (i)  Government   Obligations,   (ii)
evidences of ownership of a proportionate interest in specified Government
Obligations, which Government Obligations are held by a bank or trust company
organized and existing under the laws of the United States of America or any
state thereof in the capacity of custodian and (iii) obligations of state or
local government municipal bond issuers, provision for the payment of the
principal of and interest on which shall have been made by deposit with the
trustee or escrow agent of obligations described in (i) or (ii) above, the
maturing principal of and interest on which, when due and payable, shall
provide sufficient money to pay the principal of, premium, if any, and interest
on such obligations of state or local government municipal bond issuers, (iv)
obligations of state or local government municipal bond issuers, the principal
of and interest on which, when due and payable, have been insured by a bond
insurance company whose obligations are rated in the highest rating category by
Moody's Investors Service, Inc., and Standard & Poor's Corporation, and (v)
full faith and credit obligations of state or local government municipal bond
issuers, which are rated in the highest rating category by both Standard &
Poor's Corporation and Moody's Investors Service, Inc.

           "DEPRECIATION RESERVE FUND" means that account created pursuant to
Section 4.05.

           "EXISTING FACILITIES" means the University of Kentucky Hospital
facilities located in Lexington, Fayette County, Kentucky, owned and operated
by the Board as of the date of adoption of this Resolution.

           "FINANCIAL   STATEMENTS"   means  the   financial   statements   of  the
Operations of the Hospital.

           "FISCAL YEAR" means any twelve (12) month period beginning July 1 of
each year and ending June 30 of the following year.

           "GOVERNMENT OBLIGATIONS" means direct obligations of, or obligations
the timely payment of the principal of and interest on which are fully and
unconditionally guaranteed by the United States of America.

           "GOVERNMENT RESTRICTIONS" means federal, state or other applicable
governmental laws or regulations affecting the Board and the Operations of the



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