83-78 RATIFYING AND APPROVING THE EXECUTION OF A PURCHASE CONTRACT AMONG THE CITY OF DECATUR, MACON COUNTY, ILLINOIS, DECATUR MEMORIAL HOSPITAL AND SMITH BARNEY, HARRIS UPHAM & CO. INC. AND OTHER UNDERWRITERS

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. � Proof No. 5--9-28-83—(4246) La Salle St.Press-527-3080—(Pat.No.3,136,248) Indenture and (iv) pay expenses incurred in connection with the issuance of the Series 1983 Bonds and the advance refunding of the Series 1977 Bonds and the Series 1981 Bonds. See "Advance Re- funding of the Series 1977 Bonds and the Series 1981 Bonds". Securit�. The Series 1983 Bonds will be issued pursuant to a Bond Trust Indenture dated as of October 1, 1983, (the "Bond Indenture") between the City and American National Bank and Trust Company of Chicago, Chicago, Illinois (the "Bond Trustee"). To evidence the loan by the City to the Corporation of the proceeds of the Series 1983 Bonds,the Corporation will issue and deliver to the City its Direct Obligation Note, Series A dated October 1, 1983 (the"Series A Master Note") in a princi- pal amount equal to the principal amount of the Series 1983 Bonds. The City will pledge and assign the Series A Master Note and certain of its rights under the Loan Agreement to the Bond Trustee as security for the Series 1983 Bonds. The terms of the Series A Master Note will require payment by the Corporation which, together with other moneys available therefor (and interest eazned thereon), will be sufficient to provide for the payment of the principal of, premium, if any, and interest on the Series 1983 Bonds.The Series A Master Note will be issued pursuant to a Master Trust Indenture dated as of October 1, 1983, as it may be supplemented by various supplemental indentures (collectively, the ( "Master Indenture"), between the Corporation and The Citizens National Bank of Decatur, Decatur, � Illinois (the"Master Trustee"). The Series A Master Note will entitle the Bond Trustee, as the holder thereof,to the protection of the covenants,restrictions and other obligations imposed upon the Corpora- tion by the Master Indenture. The Series A Master Note will be a full and unlimited obligation of the Corporarion but will not be secured by a pledge, grant or mortgage of any assets of the Corporation, other than Unrestricted Receivables. The Master Indenture provides for a security interest to be granted by the Corporation in its Unrestricted Receivables for the benefit of the holders of all Master Notes from time to time outstanding thereunder, including the Series A Master Note. In the Master Indenture the Corporation covenants not to create any Mortgage or lien on its I Property, other than Permitted Encumbrances, unless effective provision is made in the instrument I creating any such Mortgage or lien so that each outstanding Master Note is secured equally and . ratably with the Indebtedness to be secured by such Mortgage or lien. See "Definitions of Certain Terms" for a definition of "Property" and "Permitted Encumbrances". Principal of, redemption premium, if any, and interest on the Series 1983 Bonds aze payable solely from payments or prepayments of the Series A Master Note and other amounts payable under the Loan Agreement by the Corporation (except to the extent paid out of moneys attributable to Series 1983 Bond proceeds or the income from the temporary investment thereof and, under certain circumstances, proceeds from insurance and condemnation awazds). For further information con- cerning the security for the Series 1983 Bonds see "Security for the Series 1983 Bonds". Additional Indebtedness. Additional Bonds on a parity with the Series 1983 Bonds may be issued by the City for the purposes, upon the terms, and subject to the conditions provided in the Bond Indenture. The Corporation may issue additional Master Notes under the Master Indenture to the City and, in certain circumstances, the Corporation may also issue Additional Master Notes under the Master Indenture to parties other than the City which would be equally and ratably secured with the Master Notes pledged under the Bond Indenture for the benefit of the Bonds. Subject to the condi- tions c:ontained therein, and to additional restrictions and limitations contained in the Bond Inden- ture, the Master Indenture also permits the Corporation to incur secured and unsecured indebted- ness in addition to the Additional Master Notes and to enter into guarantees. Bondholders' Risks. There aze risks associated with the purchase of the Series 1983 Bonds. See � "Bondholders' Risks" for a discussion of some of these risks. . � ADVANCE REFUNDING OF THE SERIES 19TT � BONllS AND THE SERIES 1981 BONDS On June 28, 1977 the City issued the Series 1977 Bonds in an aggregate-principal amount of $9,575,000, of which $6,585,000 will be outstanding when the Series 1983 Bonds are issued. The Series 19TT Bonds were issued pursuant to a Trust Indenture dated as of June 1, 1977 (the "Series 4