Cleveland Clinic Health System Obligated Group - FMSbonds.com

Debt according to a fixed schedule stated in such resolution ending on or before the Fiscal Year in whichsuch principal and premium, if any, is due, then the principal of (and, in the case of retirement, or to theextent provided for by the sinking fund, the premium, if any, and interest and other debt service charges on)such Balloon Debt shall be computed as if the same were due in accordance with such schedule, providedthat this clause (3) shall apply only to Balloon Debt for which the installments previously scheduled havebeen paid or deposited to the sinking fund established with respect to such Indebtedness on or before thetimes required by such schedule;(4) principal of and premium, if any, and interest and other debt service charges onIndebtedness, or portions thereof, shall not be included in the computation of the Maximum Annual DebtService Requirements for any Fiscal Year for which such principal, premium, interest, or other debt servicecharges are payable from funds irrevocably deposited or set aside in trust or escrowed from the proceeds ofIndebtedness (or income from the investment thereof) for the payment thereof at the time of suchcalculations (including without limitation capitalized interest and accrued interest so deposited or set asidein trust or escrowed with the Master Trustee or another Independent Person approved by the MasterTrustee);(5) as to any Variable Rate Indebtedness, the average rate thereon (or that would have beenborne thereby had such Indebtedness then been outstanding and had such Indebtedness accrued interestbased upon the variable interest rate specified in such Indebtedness or, for any period for which suchvariable interest rate was not calculated or calculable, the next most comparable variable interest rate at thetime of sale in the opinion of a nationally recognized firm of investment bankers or financial consultants)during any 24 month period ending within two months prior to the date of calculation shall be presumed toapply for all future dates;(6) except as otherwise provided, in the case of Guaranty Debt, no debt service shall bedeemed to be payable by the guarantor; provided, however, that if the Person obligated on the GuarantyDebt is actually required to make any payment in respect of obligations with respect to which the GuarantyDebt was issued, the total amount payable by such Person on the Guaranty Debt in such Fiscal Year shallbe included in any computation of the Maximum Annual Debt Service Requirements of such Person forsuch year and the amount payable by such Person on the Guaranty Debt in any future Fiscal Year shall beincluded in any computation of the Maximum Annual Debt Service Requirements until such time as thePerson primarily liable has made all payments due on the obligations for which the Guaranty Debt wasissued for one Fiscal Year; and(7) anything in the Master Indenture to the contrary notwithstanding, any portion of anyIndebtedness of any member of the Combined Group for which an Interest Rate Hedge has been obtainedby such member shall be deemed to bear interest for the period of time that such Interest Rate Hedge is ineffect at a net rate which takes into account the interest payments made by such member on suchIndebtedness and the payments made or received by such member on such Interest Rate Hedge; providedthat the long-term credit rating of the provider of such Interest Rate Hedge (or any guarantor thereof) is inone of the three highest rating categories of each Rating Agency which then rates any Related Bonds(without regard to any refinements of gradation of rating category by numerical modifier or otherwise) or isat least as high as that of the Combined Group; in addition, so long as any Indebtedness is deemed to bearinterest at a rate taking into account an Interest Rate Hedge, any payments made by a member of theCombined Group on such Interest Rate Hedge shall be excluded from Expenses and any payments receivedby such a member on such Interest Rate Hedge shall be excluded from Revenues, in each case, for allpurposes of the Master Indenture;provided that any obligation owed by one member of the Combined Group to another member of the CombinedGroup shall not constitute Long-Term Indebtedness for purposes of this definition; provided further, that there shallbe excluded from Long-Term Indebtedness for purposes of this definition any Non-Recourse Indebtedness of theCombined Group or any Obligated Issuer or Group Affiliate.“Member” or “Member of the Obligated Group” means an Obligated Issuer under the Master Indenture.C-13