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21 Instrument and will not be subject to increase or decrease at a later date. See “– Debt Service Reserve Account” below. The Reserve Account may be maintained in the form of one or more separate subaccounts which are established for the purpose of holding the proceeds of separate issues of the 2018 Bonds and any Parity Debt in conformity with applicable provisions of the Code to the extent directed by the Successor Agency in writing to the Trustee. Additionally, the Successor Agency may, in its discretion, combine amounts on deposit in the Reserve Account and on deposit in any reserve account relating to any (but not necessarily all) Parity Debt in order to maintain a combined reserve account for the 2018 Bonds and any (but not necessarily all) Parity Debt. Redemption Account. On or before the Business Day preceding any date on which Bonds are to be redeemed pursuant to the optional redemption provisions of the Indenture, other than mandatory Sinking Account redemption of Term Bonds, the Trustee will withdraw from the Debt Service Fund any amount transferred by the Successor Agency for deposit in the Redemption Account, such amount being the amount required to pay the principal of and premium, if any, on the Bonds to be redeemed on such date. All moneys in the Redemption Account will be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds to be redeemed pursuant to an optional redemption on the date set for such redemption, other than mandatory Sinking Account redemption of Term Bonds. Interest due on Bonds to be redeemed on the date set for redemption will, if applicable, be paid from funds available therefor in the Interest Account. Reserve Account; 2018 Reserve Policy Deposit of 2018 Reserve Policy. On the date of issuance of the 2018 Bonds, the Successor Agency will cause the 2018 Reserve Policy, in an amount equal to the Reserve Requirement for the 2018 Bonds, to be deposited into the 2018 Reserve Subaccount of the Reserve Fund. The Trustee will draw on the 2018 Reserve Policy and transfer such amounts to the Interest Account and the Principal Account, in such order, to the extent required to make the deposits then required to be made pursuant to the Indenture to pay debt service on the 2018 Bonds. The Successor Agency will have no obligation to replace the 2018 Reserve Policy or to fund the 2018 Reserve Subaccount with cash if, at any time that the 2018 Bonds are Outstanding, (i) any rating assigned to 2018 Reserve Insurer is downgraded, suspended or withdrawn, or (ii) amounts are not available for any reason under the 2018 Reserve Policy, other than in connection with the replenishment of a draw on the 2018 Reserve Policy. Definition of Reserve Requirement. The Indenture defines “Reserve Requirement” to mean, with respect to the 2018 Bonds and any Parity Debt issued as Bonds pursuant to a Supplemental Indenture, the lesser of (i) 125% of the average Annual Debt Service with respect to the 2018 Bonds and Parity Debt, as applicable; (ii) Maximum Annual Debt Service with respect to the 2018 Bonds and any Parity Debt, as applicable; or (iii) with respect to an individual series of Bonds, 10% of the original principal amount of such series of Bonds (or, if such series of Bonds has more than a de minimis amount of original issue discount or premium (as determined in accordance with the Code), 10% of the issue price of such series of Bonds); provided that, the Reserve Requirement may be determined on an individual basis with respect to a series or issue of Bonds or on a combined basis for two or more series of Bonds or Parity 126