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11 (a) A surety bond or insurance policy issued to the Paying Agent, as agent of the Bondholders, by a company licensed to nate an insurance policy guaranteeing the timely payment of debt service on the Bonds (a 'municipal bond insurer"). if the calms paying ability of the issuer thereof shall be rated 'AAA' or 'Ana' by Standard & Pones Corporation ('S&P') or Moody's Investors Service ('Moody'.'), respectively; (b) A suety bond or insurance policy issued to the Paying Agent. as agent of the Bondholders, by an entity other than s municipal bond insurer. if the form and 'substance of such instrument and the issuer hereof shall be approved by the Bond Insurer; or (c) An unconditional irrevocable letter of credit issued to the Paying Agent, u agent of the Bondholders, by a bank, if such bank is rated at least "AA' by S&P. Any such Reserve Account Credit Instrument shall meet the further terms and conditions described in Subsection Z of Section 16 of Resolution No. 89-19 and shall be payable or available to be drawn upon, u the can may be (upon the giving of notice as required theraunder), by the Paying Agent on any interest payment date on which a deficiency exists which cannot be cured by money in any other fund or account held pursuant thereto and available for such purpose. It shall be the duty of the Paying Agent to, and the Paying Agent .hall, without further authorization or direction from the County, ascertain the necessity for a clam or draw upon any Reserve Account Credit Instrument and provide notice to the issuer of the Reserve Account Credit Instrument in accordance with its terms not Inter than three days (or such appropriate time period as will, when combined with the timing of required payment under the Reserve Account Credit Instrument, ensue payment under the Reserve Account Credit Instrument on or before the interest payment date) prior to each interest payment date. Ifa disbursement is made under any such Reserve Account Credit Instrument, the County may reinstate the maximum limits of such Reserve Account Credit Instrument immediately following such disbursement, otherwise the amount of credit toward the Reserve Account requirement for such Reserve Account Credit Instrument shall be appropriately reduced. Furthermore, the County may at any time and from time to time cause to be deposited in the Reserve Account such Reserve Account Credit Instrument and cause an appropriate amount to be withdrawn from the Reserve Account and released to the County. Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest on Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other purpose. However, upon the valuation of the Reserve Account in each year, if the moneys applied and allocated to the Reserve Account (except the investment income thereon) exceed the amount required, such excess may be withdrawn and released to the County. If the Reserve Account requirement shall at any time be satisfied in whole or in part with a qualifying letter of credit and such letter of credit is about to expire or terminate, the County authorizes and directs the Paying Agent to draw upon such letter of credit prior to its expiration or termination to the extent required to fully fund the Reserve Account requirement unless a replacement Reserve Account Credit Instrument is in place or the Reserve Account is otherwise fully funded in its required amount. (5) Fifth. moneys in the Revenue Fund shall be applied to the payment of current debt service and reserve requirements of any obligations of the County issued to finance the cost of additions, acquisition, extensions and improvements to the System which are junior and subordinate to the hen of the Bonds on the Pledged Funds. (6) Sixth, the balance of any moneys remaining in the Revenue Fund after the above required payments have been made may be (a) deposited into a special fund to be known as the "Sewer and Water Renewal and Replacement Fund," which shall be used only for the purpose of paying the costs of extensions, enlargements. or additions to or the replacement of capital assets of the System, and for emergency repairs thereto or (b) used by the County for any lawful purpose. No further deposits to the Sinking Fund, the Bond Amortization Account or the Reserve Account shall be required when the aggregate sums deposited therein are and remain at least equal to the num of all of the principal and interest then due and thereafter becoming due in all ensuing years for the Bonds then outstanding. Flow of Funds under Senior Lien Bond Resolution