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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• I Proof No.6-9-28-83—(4246) La Salle St.Press—�27-3�80—(Pat. \o..^_:.1��?�1S) 19TT Indenture"), between the City and The Citizens National Bank of Decatur, Decatur, Illinois, as Trustee (the "Series 1977 Indenture Trustee"). The proceeds of the Series 1977 Bonds were loaned to the Corgoration and used to (i) pay or reimburse the Corporation for a portion of the cost of con- structing and equipping a project consisting of a three-story addition to the Hospital's Faciliries (the "1977 Project"), (ii) to pay expenses related to certain interim financing of the 1977 Project, (iii) to retire an esisting first mortgage note of $3.41 million and to pay certain fees in connection there- with, (iv) to pay certain expenses related to the issuance and sale of the Series 1977 Bonds, and (v) to create a debt service fund reserve in an amount equal to maximum annual debt service on the Series 1977 Bonds. On July 1, 1981 the City issued the Series 1981 Bonds in an aggregate principal amount of $11,915,000, all of which will be outstanding when the Series 1983 Bonds are issued. The Series 1981 Bonds were issued pursuant to a First Supplemental Trust Indenture dated as of June 1, 1981 (the "Series 1981 Indenture"), between the City and the Series 1977 Indenture Trustee. The proceeds of the Series 1981 Bonds were loaned to the Corporation and used to (i) pay, or reimburse the Cor- poration for, a portion of the costs of a project consisting of the construction of replacement facilities for general surgical rooms, post-anesthesia recovery section, emergency department treatment rooms, medical records storage and materials handling, along with remodeling of existin� facilities to expand surgery support areas, emergency, medical records and purchasing departments, accounting/data processing section and certain food service facilities (the "1981 Project"), (ii) pay a portion of the interest on the Series 1981 Bonds while the 1981 Project was being constructed and (iii) pay cer- , tain expenses related to the issuance and sale of the Series 1981 Bonds. In order to rovide for the advance refundin of the Series 19TT Bonds and the Series 1981 . . . P g Bonds, the Corporation will use a portion of the proceeds of the 1983 Bonds to purchase United - � - � States Treasury Obligations, State and Local Government Series (the "Government Securities"), the ' principal of which together with the interest to be earned thereon will be su�cient to pay when due , � the rincipal of and interes n the Serie 7 onds as such becomes due and to pay the principal � of an interes on the Series 1981 Bonds becoming due on or prior to � . )�lSEPZT � re A � Neither the maturing principal of the Government Securities nor the interest thereon will serve as . - i security for or be available for the payment of principal of, interest, or redemption premium, if any, � on the Series 1983 Bonds. The Government Securities will be held in a trust fund (the "Securities Trust Fund") by the Series - 1977 Indenture Trustee pursuant to a Second Supplemental Indenture, dated as of October 1, 1983 � (the "Second Supplemental Indenture"), to the Series 1977 Indenture for the benefit of the holders _ ' of the outstanding Series 1977 Bonds and the Series 1981 Bonds. From and after the creation of the , Securities Trust Fund, payment of the principal of, premium, if any, and interest on the outstanding � Series 1977 Bonds and the Series 1981 Bonds shall remain the obligations of the City until paid or - redeemed as provided in the Second Supplemental Indenture, but such principal, premium, if any, • and interest shall be payable solely from the Securities Trust Fund and shall not, under any circum- ' stances, be payable from any other funds of the City. After the crearion of the Securities Trust Fund, the holders of the outstanding Series 1977 Bonds and the Series 1981 Bonds shall not be entitled to, nor have any rights with respect to, the properties and rights conveyed to the Series 1977 Indenture Trustee by the granting clauses of the Series 1977 Indenture or the Series 1981 Indenture (other F than the Securities Trust Fund). The Series 1977 Indenture Trustee shall release to the City all of its ~ interest in the property theretofore securing the outstanding Series 1977 Bonds and the Series 1981 = Bonds. - THE ISSUER - The City is a municipality qualifying as a home rule unit and may, �nder the provisions of Article VII, Section 6(a) of the 1970 Constitution of Illinois, and an enabling ordinance adopted by the Council of the City on April 4, 1977, authorize the issuance of bonds to assist hospitals open to the public in building, maintaining and improving such facilities for the benefit of its residents. 5