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the Prepayment Account as set forth above may be used to purchase Outstanding Bonds pursuant to Section 4.6 hereof. Section 3.7. Reserve Account of the Special Tax Fund. (a) There shall be maintained in the Reserve Account an amount equal to the Reserve Requirement, into which moneys shall be transferred from the Special Tax Fund to the extent necessary to restore the balance in the Reserve Account to the Reserve Requirement. In addition, the County may, but shall not be obligated to, advance funds from any source of legally available funds in order to maintain the Reserve Account of the Special Tax Fund at the Reserve Requirement or to avoid a default in payment on the Bonds, in which event the County shall be reimbursed for any such advance from the amount of Special Taxes thereafter received that would otherwise be transferred from the Special Tax Fund to the Reserve Account pursuant to this Section 3.7 hereof or from funds available for such purpose in the Surplus Fund. (b) Notwithstanding any provision hereof to the contrary, the amounts in the Reserve Account shall be applied as follows: (i) Moneys in the Reserve Account shall be used solely for the purpose of(A) paying the principal of, including Sinking Fund Payments, and accrued interest on any Bonds when due in the event that the moneys in the Interest Account and the Principal Account are insufficient therefor, and (B)making any required transfer to the Rebate Fund pursuant to Section 3.8 hereof upon written direction from the County. If the amounts in the Interest Account or the Principal Account are insufficient to pay the principal of, including Sinking Fund Payments, or accrued interest on any Bonds when due, or amounts in the Special Tax Fund are insufficient to make transfers to the Rebate Fund when required, the Trustee shall withdraw from the Reserve Account for deposit in the Interest Account or the Principal Account or the Rebate Fund, as applicable, moneys necessary for such purposes. (ii) Whenever moneys are withdrawn from the Reserve Account, after making the required transfers referred to in Sections 3.3 and 3.4 hereof, the Trustee shall transfer to the Reserve Account from available moneys in the Special Tax Fund, or from any other legally available funds which the County elects to apply to such purpose, the amount needed to restore the amount of such Reserve Account to the Reserve Requirement. Moneys in the Special Tax Fund shall be deemed available for transfer to the Reserve Account only if the Trustee determines that such amounts will not be needed to make the deposits required to be made to the Interest Account or the Principal Account for the next succeeding Interest Payment Date. If amounts in the Special Tax Fund or otherwise transferred to replenish the Reserve Account are inadequate to restore the Reserve Account to the Reserve Requirement, then the County shall include the amount necessary fully to restore the Reserve Account to the Reserve Requirement in the next annual Special Tax levy to the extent of the maximum permitted Special Tax rates and to the extent permitted by Chapter 32. (iii) In connection with an optional redemption of the Bonds hereunder or a partial defeasance of the Bonds in accordance with Section 9.1 hereof, amounts in the Reserve Account may be applied to such optional redemption or partial defeasance so long as the amount on deposit in the Reserve Account following such optional redemption or partial defeasance equals the Reserve Requirement, as calculated for the Bonds to remain Outstanding immediately after such optional redemption or partial defeasance. 26