NL10 TPTK on scary board against very loose passive player

[Brocken]

Party Poker No-Limit Hold'em, $0.10 BB (10 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

MP2 ($6.58)
Hero ($10.34)
CO ($9.88)
Button ($22.29)
SB ($1.75)
BB ($1.70)
UTG ($5.55)
UTG+1 ($14.72)
UTG+2 ($1.92)
MP1 ($15.33)

Preflop: Hero is MP3 with A[img]/images/graemlins/heart.gif[/img], T[img]/images/graemlins/heart.gif[/img].
<font color="#666666">5 folds</font>, <font color="#CC3333">Hero raises to $0.4</font>, <font color="#666666">1 fold</font>, Button calls $0.40, <font color="#666666">2 folds</font>.

Flop: ($0.95) T[img]/images/graemlins/diamond.gif[/img], 7[img]/images/graemlins/club.gif[/img], 8[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">Hero bets $0.7</font>, Button calls $0.70.

Turn: ($2.35) 3[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>

Villain is 56/2.5/1.5

Do I bet out again here with TPTK? And what do I do if I get reraised?