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(2) When the Revenues include receipts and revenues in addition to Uniform Charges, Net Revenues in each F'utcal Year sufficient to pay (a) one hundred percent (100%) of all required deposits into the Reserve Account, and (b) one hundred twenty percent (120%) of the amount of principal and interest becoming due in such Fiscal Year on the Bonds outstanding; provided, however, that Uniform Charges less Operating Expenses are sufficient to pay (a) one hundred percent (100%) of all required deposits into the Reserve Account, and (b) one hundred percent (100%) of the amount of principal and interest becoming due in such Fiscal Year on the Bonds outstanding. Any amounts owed by the County to the issuer of a Reserve Account Credit Instrument as a result of a draw thereon, as appropriate, shall be added to the principal and interest payable on the Bonds to determine o mpWnee with this rate covenant. Reserve Account The Master Bond Resolution provides for the establishment and maintenance of a Reserve Account within the Sinking Fund. Upon delivery of the Series 1996 Bonds, the County shall deposit into or credit to the Reserve Account a sun equal to the difference between the amount on deposit therein and an amount equal to the lesser of (i) the maximum annual debt service on all the Series 1996 Bonds and the Series 1993 Bonds, or (ii) one and one-quarter (125%) times the average annual debt service on the Series 1996 Bonds and the Series 1993 Bonds (the "Reserve Account Requirement"); provided, however, in no event shall such deposit exceed the maximum amount which would not adversely affect the exclusion of the interest on the Series 1996 Bonds and the Series 1993 Bonds from gross income of the Registered Owners thereof for purposes of federal income taxation. Financial Guaranty Insurance Company has agreed to provide a Debt Service Reserve Fund Policy (the "Reserve Policy") for deposit in the Reserve Account for the Series 1996 Bonds upon delivery of the Series 1996 Bonds. See: "MUNICIPAL BOND INSURANCE - Debt Service Reserve Fund Policy." Moneys on deposit in the Reserve Account shall be applied in accordance with the provisions of the Master Bond Resolution solely for the purpose of the payment of the Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other purpose. No further deposits shall be required to be made into the Reserve Account as long as there shall remain on deposit therein (including any Reserve Account Credit Instrument) a sum equal to the Reserve Account Requirement. The value of the Reserve Account, including investments on deposit in the Reserve Account, shall be determined annually at market on the fust day of the Fiscal Year by an independent firm of certified public accountants, who may be the accountants for the County, in accordance with generally accepted accounting principles. Notwithstanding the foregoing, in lieu of, in whole or in part, the required deposits into the Reserve Account, the County may cause to be deposited into the Reserve Account any Reserve Account Credit Instrument meeting the requirements of the Master Bond Resolution. 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. 9