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(5) Where applicable, the amount available for <br />draws or claims under a Reserve Account Credit <br />Instrument may be reduced by the amount of cash or <br />permitted investments deposited in the Reserve Account <br />pursuant to either clause (i) of the preceding <br />subparagraph (4). <br />(6) Cash on deposit in the Reserve Account shall <br />be used (or investments purchased with such cash shall <br />be liquidated and the proceeds applied as required) <br />prior to any drawing on any Reserve Account Credit <br />Instrument. If and to the extent that more than one <br />Reserve Account Credit Instrument is deposited in the <br />Reserve Account, drawings thereunder and repayments of <br />costs associated therewith shall be made on a pro rata <br />basis, calculated by reference to the maximum amounts <br />available thereunder. <br />"SECTION 17. APPLICATION OF SERIES 1989 BOND PROCEEDS. All moneys <br />received from the sale of the Series 1989 Bonds shall be deposited and applied <br />by the County as follows: <br />"A. All accrued interest on the Series 1989 Bonds shall be <br />deposited into the Sinking Fund and applied exclusively for the payment of <br />interest first becoming due on the Series 1989 Bonds. <br />"B. A sum, if any, specified by subsequent resolution of the <br />County shall be deposited into the Reserve Account in the Sinking Fund. <br />"C. The amount necessary to purchase and thereby retire all of <br />the outstanding Original Bonds shall be paid to the Government. <br />"D. Next, the amount necessary to pay all engineering fees, costs <br />and expenses of financial reports, studies and projections, legal fees, fees of <br />financial advisors, costs of the issuance of the Series 1989 Bonds, premiums and <br />expenses related to insuring or rating the Series 1989 Bonds and all other <br />similar costs incurred in connection with the retirement of the Original Bonds <br />and the issuance of the Series 1989 Bonds shall be paid or provided for. <br />"If for any reason any proceeds of the Series 1989 Bonds are not <br />necessary for, or are not applied to, the payment of such costs, then such <br />moneys shall be deposited by the County into the Sinking Fund and used only to <br />pay the principal of and interest on the Bonds. <br />- 38 - <br />