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16. Fund and Accounts. There is hereby created a special fund to be designated the • "General Obligation Bonds, Series 2013A Fund" (the "Fund") to be administered and maintained by the Treasurer as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the Authority. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund the following separate accounts: (i) Escrow Account. The Escrow Account will be maintained as an Escrow Account (the "Escrow Account") with U.S. Bank National Association in St. Paul, Minnesota, which is a suitable financial institution within the State, whose deposits are insured by the Federal Deposit Insurance Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution is hereby designated escrow agent (the"Escrow Agent") for the Escrow Account. All proceeds of the sale of the Bonds will be received by the Escrow Agent and applied to fund the Escrow Account or used to pay costs of issuance. Proceeds of the Bonds not used to pay costs of issuance or fund the Escrow Account will be returned to the City for deposit into the Debt Service Account. All investment earnings on the Escrow Account are hereby irrevocably pledged and appropriated thereto. The Escrow Account will be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at such rates as will be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, (i) to pay when due the interest to accrue on each Bond to and including February 1, 2017 (the"Redemption Date"), and (ii) to pay on the Redemption Date the principal amount of each of the Refunded Bonds; and such amounts will be paid from the Escrow Account. The Escrow Account will be irrevocably appropriated to the • payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are applied to prepayment of the Refunded Bonds. The moneys in the Escrow Account will be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account may be remitted to the Authority, all in accordance with the Escrow Agreement (hereafter defined) by and between the Authority and the Escrow Agent. Any moneys remitted to the Authority upon termination of the Escrow Agreement will be deposited in the Debt Service Account. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) any balance remitted to the Authority upon funding the Escrow Account and paying costs of issuance; (b) any balance remitted to the Authority upon the termination of the Escrow Agreement; (c) any balance remaining on February 2, 2017,in the debt service account created under the Authority resolution authorizing the issuance and sale of the Refunded Bonds (the"Prior Resolution"); (d) any collections of all taxes herein levied for the payment of the Bonds and interest thereon; (e) any funds made available to the Authority from the City; (f) all investment earnings on funds held in the Debt Service Account; and (g) any and all other moneys, which are properly available and are appropriated by the governing body of the Authority to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act. • 14 414396v3 JSB EL185-21