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Obligations will be payable on a pro-rata basis from all available moneys deposited in the Gas Tax Fund. Additionally, any moneys which remain in the Debt Service Fund after payment of principal of and interest on the Bonds and Additional Obligations will be used to pay the Insurer for any other unpaid advances under the Reserve Policy. (3) Surplus. As long as all of the foregoing payments, allocations and transfers are made at the times and in the manner described above in subsections (1) and (2), any moneys remaining in the Gas Tax Fund may at any time be treated as surplus and applied for any lawful purpose. Reserve Account A Reserve Account will be established under the Indenture for the Bonds in an amount equal to the Reserve Requirement. The "Reserve Requirement" is defined as an amount equal to, at any date of determination, the least of (i) ten percent (10%) of the original par amount of the Bonds, (ii) Maximum Annual Debt Service with respect to the Bonds, or (iii) 125% of average annual debt service on the Bonds; provided, however, that the Reserve Requirement shall not exceed the Reserve Requirement calculated on the Closing Date; provided, however, that the Reserve Requirement shall not exceed the Reserve Requirement calculated on the Closing Date; provided, further that the City may meet all or a portion of the Reserve Requirement by depositing a Qualified Reserve Account Credit Instrument meeting the requirements of the Indenture. The City will satisfy the Reserve Requirement with respect to the Bonds by depositing the Reserve Policy (as defined herein) in the Reserve Account in accordance with the Indenture. The City is not obligated to replace the Reserve Policy or to fund the Reserve Account with cash if, at any time that the Bonds are Outstanding, amounts are not available under the Reserve Policy other than in connection with a draw on the Reserve Policy. Maintenance of Gas Tax Revenues The City will use its best efforts to comply with all provisions of law and any regulations issued thereunder relating to the Gas Tax Revenues, including, but not limited to, Sections 2119 and 2151 through 2155 of the California Streets and Highways Code and Sections 65089.3 and 65089.4 of the California Government Code relating to conformance with the congestion management program relating to the City and will take any and all reasonable actions required in order to maintain the City's ability to receive the Gas Tax Revenues and apply the same as provided herein; provided, that nothing herein shall require the City to take any action or expend any City funds to comply with any such requirements deemed unreasonable in the sole discretion of the City, so long as failure to take such action or expend such funds will not cause the amount of estimated Gas Tax Revenues to be received by the City in the next Fiscal Year to be less than one hundred fifty percent (150%) of the Maximum Annual Debt Service as of the date of calculation. Additional Obligations In addition to the Bonds, the City may, by Additional Obligations Instrument (as defined in the Indenture), issue or incur other loans, advances or indebtedness payable from Gas Tax Revenues on a parity with the Bonds to provide for the full or partial refunding of the Bonds, provided that there is a savings in debt service as a result of the issuance of such refunding bonds. GAS TAX REVENUES General Pursuant to the Indenture, the City has pledged its Gas Tax Revenues for the payment of the Bonds. Gas Tax Revenues are comprised of all amounts received by the City from the State in accordance with Streets and Highways Code Sections 2105, 2106, and 2107, as such provisions may be amended, and all other revenues 55A-95