§ 3.11.010. Hospital trailing liability fund is established.

A special revenue fund is established which shall be designated the "Hospital Trailing Liability Fund" and which shall contain an amount of funds determined to be necessary by the Porter County board of commissioners and Porter County council for the payment of trailing liabilities and indebtedness of the hospital. Said fund shall be subject to appropriation by the Porter County council. The hospital trailing liability fund shall initially consist of the following:

A.

The Porter County Hospital Association 1997 Bond Refinancing Escrow Account, Account No. 81-0149-01-3, at First Source Bank in the approximate amount of two million four thousand eight hundred twenty dollars ($2,004,820.00), which account shall be closed on or about December 31, 2007 following the final principal payment on said bonds and any remaining funds shall transfer to the hospital trailing liability fund;

B.

The Porter Health Services Account, Account No. 7232301122, at Fifth Third Bank in the approximate amount of three hundred twenty-seven thousand five hundred sixty-two dollars ($327,562.00), which account will be closed on or about December 31, 2007 and any remaining funds shall transfer to the hospital trailing liability fund;

C.

The Porter Memorial Health System Dividend Escrow Account, Account No. 7232883343, at Fifth Third Bank in the approximate amount of eighty-six thousand three hundred twenty-six dollars ($86,326.00), which account shall be closed on or about December 31, 2007 and the balance shall transfer to the hospital trailing liability fund and be assigned a separate line item; and

D.

The additional sum of three million dollars ($3,000,000.00), determined by the Porter County board of commissioners and Porter County council to be a reasonable estimate of anticipated trailing hospital liabilities, obligations and indebtedness, to be deposited into the hospital trailing liability fund, said funds currently in Fifth Third Bank, Account No. 7233192280. Such funds shall be used to satisfy claims including, but not limited to the following:

1.

Hospital associate workers' compensation claims existing prior to the closing date,

2.

Hospital associate health claims existing prior to the closing date,

3.

Litigation and settlement of hospital claims existing prior to the closing date,

4.

Satisfaction of hospital indebtedness and/or other obligations existing prior to the closing date,

5.

Contractual services (including accounting, consulting, and legal) related to the wind-up of hospital affairs and management/disposition of hospital liabilities, and

6.

Investment services related to the sale proceeds.

To the extent additional funds are needed to satisfy such indebtedness, obligations or liabilities, the Porter County board of commissioners and Porter County council may authorize the transfer of necessary funds from the hospital sale proceeds fund.

(Ord. 07-21 § 2)