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issuer of the letter of credit falls below "AA" by S&P and "As" by <br />Moody's, the obligation to reimburse the issuer of the Reserve <br />Account Credit Instrument shall be subordinate to the cash <br />replenishment of the Reserve Account. <br />(4) In the event (a) the revolving reinstatement feature <br />described in the preceding subparagraph (3) is suspended or <br />terminated, or (b) the rating of the claims paying ability of the <br />issuer of the surety bond or insurance policy falls below "AAA" by <br />S&P and "Aaa°7 by Moody's, or (c) the rating of the issuer of the <br />letter of credit falls below "AA" by S&P and "Aa" by Moody's, the <br />Issuer shall either (i) deposit into the Reserve Account an amount <br />sufficient to cause the cash or permitted investments on deposit in <br />the Reserve Account to equal the Reserve Account Requirement, such <br />amount to be paid over the ensuing five years in equal installments <br />deposited at least semi-annually or (ii) replace such instrument <br />with another Reserve Account Credit Instrument within six months of <br />such occurrence. In the event (a) the rating of the claims -paying <br />ability of the issuer of the surety bond or insurance policy falls <br />below "A", or (b) the rating of the issuer of the letter of credit <br />falls below "A", or (e) the issuer of the Reserve Account Credit <br />Instrument defaults in its payment obligations hereunder, or (d) the <br />issuer of the Reserve Account Credit Instrument becomes insolvent, <br />the County shall either (i) deposit into the Reserve Account an <br />amount sufficient to cause the cash or permitted investments on <br />deposit in the Reserve Account to equal the Reserve Account <br />Requirement, such amount to be paid over the ensuing year in equal <br />installments on at least a monthly basis, or (ii) replace such <br />instrument with another Reserve Account Credit Instrument within six <br />months of such occurrence. <br />(5) Where applicable, the amount available for draws or <br />claims under a Reserve Account Credit Instrument may be reduced by <br />the amount of cash or permitted investments deposited in the Reserve <br />Account pursuant to either clause (i) of the preceding subparagraph <br />(4). <br />(6) Cash on deposit in the Reserve Account shall be used (or <br />investments purchased with such cash shall be liquidated and the <br />proceeds applied as required) prior to any drawing on any Reserve <br />Account Credit Instrument. If and to the extent that more than one <br />Reserve Account Credit Instrument is deposited in the Reserve <br />Account, drawings thereunder and repayments of costs associated <br />therewith shall be made on a pro rata basis, calculated by reference <br />to the maximum amounts available thereunder. <br />Z. VARIABLE RATE OBLIGATIONS. If the County at any time shall issue <br />Additional Parity Bonds the interest rate on which is not established at the time <br />of issuance at a single numerical rate with respect to each maturity thereof <br />("Variable Rate Bonds"), then such Variable Rate Bonds shall, for purposes of <br />this Resolution, save for the provisions with respect to payment of interest <br />thereon to the holders and registered owners thereof, be assumed to bear interest <br />at a fixed rate equal to the higher of (a) 9.29 and (b) the highest interest rate <br />borne over the preceding 24 months by any outstanding Variable Rate Bonds, or if <br />no such Variable Rate Bonds are at the time outstanding, by variable rate debt <br />for which the interest rate is computed by reference to an index comparable to <br />30 <br />