RES 20-94 - Laserfiche WebLink

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thereon will have been fully paid. There will be maintained in the Fund two separate accounts, to be designated the Escrow Account and Debt Service Account. (a) Escrow Account. Pursuant to an escrow agreement (the "Escrow Agreement") with Zions Bancorporation, National Association, Chicago, Illinois (the "Escrow Agent") the City will establish and maintain an escrow account (the "Escrow Account"). The Escrow Agent 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 as the escrow agent for the Escrow Account. All proceeds of the sale of the Bonds (less amounts deposited in the Debt Service Account under Section 4.01(b)) 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, to pay when due the interest to accrue on each Bond to and including February 1, 2022 (the "Redemption Date"), and to pay on the Redemption Date the principal amount of each of the Refunded Bonds, by transferring to the Registrar sufficient funds to make such payment. From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on, the Bonds to and including the Redemption Date, and (ii) the principal of the Refunded Bonds due by reason of redemption on the Redemption Date. The moneys in the Escrow Account will be used solely for, and the Escrow Account will be irrevocably appropriated to, the purposes herein set forth and in the Escrow Agreement and for no other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in accordance with the Escrow Agreement. Any moneys remitted to the City upon termination of the Escrow Agreement will be deposited in the Debt Service Account. (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there will be credited: (i) any amounts paid by the Purchaser over the minimum purchase price, to the extent designated for deposit in the Debt Service Fund in accordance with Section 2.03 hereof, (ii) any balance remitted to the City upon the termination of the Escrow Agreement; (iii) any balance remaining on February 2, 2022, in the debt service fund created by the City Council resolution authorizing the issuance and sale of the Refunded Bonds (the "Prior Resolution"); (iv) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (v) all investment earnings on funds in the Debt Service Account; (vi) accrued interest (if any) received upon delivery of the Bonds, and any other proceeds of the Bonds to the extent not required to fund the Escrow Account; (vii) after the Redemption Date, net revenues of the municipal sewer system pledged to the repayment of the Bonds; and (viii) any and all other moneys which are properly available and are appropriated by the City Council 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. There will be deposited from time to time in the Debt Service Fund a sufficient amount EL185-67-688304.v2 7