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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1 � Proof No. 5--9-28-83—(4246) La Salle St.Press-527-3084—(Pat. No.3,136,248) SECURITY FOR THE SERIES 1983 BONDS The Series 1983 Bonds, together with interest thereon, are special and limited obligations of the City payable solely from payments or prepayments of the Series A Master Note pledged under the Bond Indenture and other payments made under the Loan Agreement (except to the extent paid out of moneys attributable to Series 1983 Bond proceeds or the income from the temporary invest- ment thereof and, under certain circumstances, proceeds from insurance and condemnation awards). The Series A Master Note is a general obligation of the Corporation issued under the Master Inden- ture and will not be secured by a pledge, grant or mortgage of any assets of the Corporation, other than Unrestricted Receivables. The Master Indenture permits the Corporation (i) to issue Additional Master Notes, (ii) to issue other secured or unsecured indebtedness and (iii) to enter into guaran- tees, all upon the terms and conditions specified therein. See "Summary of Principal Instruments— Master Indenture" herein for a description of the terms thereof including certain restrictions im- posed on the Corporation's actions, for the benefit of all holders of Notes issued thereunder. Such terms include, among others, restrictions on liens on the Corporation's Property, restrictions on the incunence of additional debt and restrictions on the Corporation's ability to sell, lease or otherwise ' dispose of its properties or assets (except for Excluded Property) in certain circumstances (See the ' subheadings "Permitted Encumbrances," "Permitted Indebtedness," Transfers of Assets; A�liate Transactions," and "A�liate Leases" under "Summary of Principal Instruments—Master Indenture"). ' See"Summary of Principal Instruments—Loan Agreement" for a description of certain restrictions im- posed on the Corporation's actions for the benefit of the City and the holders of the Bonds issued under the Bond Indenture. The Loan Agreement provides that the Corporation shall make the desi ated a ments to the Bond Trustee for de osit into the Interest Fund and Bond Sinldng � P Y P Fund in amounts su�cient to pay the interest on and principal of the Bonds when due and into the Debt Service Reserve Fund to maintain the same at its required amount of not less than 100% of the maximum amount of interest and principal which shall be payable (whether upon maturity or mandatory Bond Sinking Fund redemption) on the Bonds in the current or any suc- ceeding Bond Year. The CorpQration is required under the Loan Agreement to pay direcdy to the Bond Trustee the amount of any deficiency in the Debt Service Reserve Fund within one year of the occurrence of such deficiency. The Corporation will cause to be deposited an amount equal to maximum annual debt service on the Series 1983 Bonds into the Debt Service Reserve Fund at the time the Series 1983 Bonds are issued. The Master Indenture requires the Corporation to make payments into the Renewal, Replacement and Depreciation Fund maintained with the Master Trus- tee in certain specified amounts (less permitted credits). The Renewal, Replacement and Deprecia- tion Fund moneys may be depleted by withdrawals or borrowings by the Corporation or transfers to other Funds, all as provided in the Master Indenture. The rights of the City in and to the Series A Master Note pledged under the Bond Indenture, the amounts payable thereon, the Loan Agreement and the amounts payable to the City under the Loan Agreement (other than the City's fees and expenses) have been assigned to the Bond Trustee to provide for and to secure the payment of principal, redemption premium, if any, and interest on the Series 1983 Bonds. The Corporation agrees under the Loan Agreement to make its payments on the Series A Master Note pledged under the Bond Indenture directly to the Bond Trustee. The obligations of the Corporation under the Master Indenture and the Series A Master Note are secured by a security interest in its Unrestricted Receivables, which security interest (a) is per- F fected to the extent the same may be perfected by filing under the Illinois Uniform Commercial ► Code and (b) is prior to any security interest in such Unrestricted Receivables which could be per- � fected by such filing, subject, however, to certain possible limitations as to enforceability (see "Bond- holders' Risks"). The obligations of the Corporation under the Master Indenture are not secured by � a lien on the Corporation's real property. However, the Corporation covenants under the Master In- denture not to create or permit any Mortgage or lien on its Property other thaa Permitted Encum- brances, unless effective provision is made, in the instrvment 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. 7