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<br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />235883 <br /> <br />( i) Escrow Account. The proceeds of the sale of the <br />Bonds, less such proceeds of the Bonds (if any) as may be used <br />to pay issuance expenses or hereinafter directed for deposit <br />into the Debt Service Account, plus any other available <br />municipal funds ("Other Funds"), if any, as may be required to <br />adequately fund the Escrow Account (under the Escrow <br />Agreement) to accomplish its purposes, are hereby pledged and <br />appropriated and shall be credited to the Escrow Account. The <br />Escrow Account shall be maintained as an escrow account with <br />the Escrow Agent which is and shall be a suitable financial <br />institution within the State of Minnesota whose deposits are <br />insured by the Federal Deposit Insurance Corporation and whose <br />combined capital and surplus is at least $500,000. All <br />proceeds of the sale of the Bonds to be received by the Escrow <br />Agent shall be applied to fund the Escrow Account or to pay <br />costs of issuing the Bonds. Such proceeds of the Bonds <br />(together with the Other Funds, if any) which are not used by <br />the Escrow Agent to pay costs of issuance of the Bonds are <br />hereby irrevocably pledged and appropriated to the Escrow <br />Account, together with all investment earnings thereon. The <br />Escrow Account shall be invested in securities maturing or <br />callable at the option of the holder thereof on such dates and <br />bearing interest at such rates as shall be required to provide <br />funds sufficient, together with any cash or other funds <br />retained in the Escrow Account, to pay (1) when called for <br />redemption on February 1, 1994, the principal amount of each <br />of the 1985A Refunded Bonds, (2) when called for redemption on <br />February 1, 1994, the principal amount of each of the 1985B <br />Refunded Bonds, (3) all interest which accrues on the 1985A <br />Refunding Bonds prior to February 1, 1994, and (4) all <br />interest which accrues on the 1985B Refunding Bonds prior to <br />February 1, 1994. The moneys in the Escrow Account shall be <br />used solely for the purposes herein set forth and for no other <br />purpose, except that any surplus in the Escrow Account shall <br />be remitted to the City, all in accordance with the terms of <br />the Escrow Agreement. Such Other Funds, if any, as may be <br />required to fully fund the Escrow Account as described above <br />are hereby appropriated for said purpose and their investment <br />and disbursement provided in the Escrow Agreement are hereby <br />authorized and approved. <br /> <br />(ii) Debt Service Account. To the Debt Service Account <br />there are hereby pledged and irrevocably appropriated and <br />there shall be credited: (1) all accrued interest received <br />upon delivery of the Bonds which is not then deposited into <br />the Escrow Account; (2) the amounts required to be paid to the <br />Bond Registrar by the Escrow Agent from the Escrow Account <br />pursuant to the Escrow Agreement to provide prompt and full <br />paYment of the interest which accrues on the 1985A Refunding <br />Bonds prior to February 1, 1994; (3) the amounts required to <br />be paid to the Bond Registrar by the Escrow Agent from the <br />Escrow Account pursuant to the Escrow Agreement to provide <br /> <br />15 <br />