(iii) installment  sale  or  conditional   sale  contracts   having  an
               original term in excess of one year;

provided, however, that any Guaranty by the Board of any obligation of any
person which obligation would, if it were a direct obligation of the Board,
constitute Short-Term Indebtedness shall be excluded.

           "NET REVENUES" means the excess, if any, of the Revenues over the
Operating Expenses.

           "OPERATING EXPENSES" means the reasonable and necessary current
expenses of maintaining, repairing and operating the Hospital, including,
without limiting the generality of the foregoing, all administrative, general
and commercial expenses, insurance and surety bond premiums, architectural
expenses, legal expenses, refunds of overpayments on patient accounts, any
taxes which may be lawfully imposed on the Board in connection with the income
from or operations of the Hospital or the property forming a part thereof,
rentals of equipment or other property,      usual expenses of maintenance and
repair, fees and expenses payable by the Board in connection with any Credit
Facility Agreement and any other current expenses required to be paid by the
Board in connection with the operation of the Hospital by law, all to the
extent properly and directly attributable to the Hospital and all as determined
in  accordance with   generally  accepted  accounting  principles  for   hospitals
consistently applied, and the expenses, liabilities and compensation of the
Trustee and Paying Agents required to be paid under the Resolution and any
Series Resolution, but not including reserves for operation, maintenance or
repair or any allowance for depreciation, amortization of financing expenses,
Principal and Interest Requirements or similar charges.

           'OPERATIONS OF THE HOSPITAL" refers to those actions and activities
generally permitted to a corporation.

           "OUTSTANDING" means, when used with reference to Bonds, as of a
particular date, all Bonds theretofore issued under a Series Resolution,

           (i)  Bonds theretofore cancelled by the Paying Agent or delivered to
                the Paying Agent for cancellation:

          (ii)  Bonds for the payment of which money, Defeasance Obligations or
                a combination of both, sufficient to pay on the date when such
                Bonds are to be paid or redeemed, the principal or redemption
                price of, and the interest accruing to such date on the Bonds
                to be paid or redeemed, has been deposited with the Paying
                Agent  in  trust  for   the  Owners  of   such  Bonds;  Defeasance
                Obligations shall be deemed to be sufficient to pay or redeem
                Bonds on a specified date if the principal of and the interest
                on such Defeasance Obligations, when due, will be sufficient to
                pay on such date the redemption price of and the interest
                accruing on, such Bonds to such date;