Whenever and so long as the assets of the Bond Fund shall be
sufficient in the aggregate to provide moneys to pay all Bonds then Outstand-
ing, including such interest thereon as may thereafter become due and payable
and any premiums upon redemption thereof, no further payments need be made into
the Bond Fund.

           The Bond Fund shall be drawn upon for the sole purpose of paying the
principal, interest and redemption price on the Bonds.        Money set aside from
time to time by the Trustee for such principal, interest and redemption price
shall be held in trust for the Owners of the Bonds with respect of which the
same shall have been so set aside.       Until so set aside for the payment of
principal, interest or redemption price as aforesaid, all moneys in the Bond
Fund shall be held in trust for the benefit of the Owners of all Bonds at the
time Outstanding equally and ratably and without preference or distinction as
between Bonds of a different series, installments or maturities.

           Section 4.04. Construction Account.

           There shall be deposited in the Bonds Proceeds Series-Construction
Account (hereinafter referred to as the "Construction Account"), which is
hereby created, the proceeds of all Bonds required to be so deposited by the
Series Resolution authorizing the Series of Bonds.     There may also be deposited
to the credit of the Construction Account any money received from any other
source for paying the cost of the Hospital Project described in such Series
Resolution.  The money in the Construction Account shall be held in trust and
applied to the payment of the cost of the Hospital Project or the Additional
Facilities as the case may be, and pending such application, shall be subject
to a lien and charge in favor of the Owners of the Bonds issued and Outstanding
under the Resolution until paid out or transferred as herein provided.

            The Construction Account shall be maintained in the State Treasury
of the Commonwealth of Kentucky.    Disbursements from said account shall be made
solely for defraying the costs of the Hospital Project in accordance with
procedures prescribed by the State Treasurer.     Moneys therein not required for
immediate disbursement for the purposes of said account shall be invested and
reinvested until needed and shall be invested solely in investments which are
legal investments for agencies of the Commonwealth and as designated in a
Series Resolution.   All investment income shall be deposited to the credit of
the Construction Account unless otherwise provided in a Series Resolution.

            Section 4.05. Depreciation Reserve Fund.

            (a) To the extent that the Board (i) is not subject to the pro-
visions of any federal or state law or regulation pursuant to which principal
of and interest on Long-Term Indebtedness are reimbursable to providers of
health care services, and (ii) receives third-party payor reimbursement on
account of capital expenditures in the form of an allowance for depreciation
and principal payments are at any time projected to exceed such reimbursement
for  depreciation,  the  Board  shall  establish   and  maintain  with   the  State
Treasurer  a Depreciation   Reserve  Fund;  provided,  however,   that  if  no  law
requires such funds to be held by the State Treasurer, with the consent of the
State Treasurer, the Depreciation Reserve Fund may be held by the Board.



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