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Section 4. Use of Proceeds and Security Provisions. Section 4.01. Use of Proceeds and Escrow Account. The proceeds of the Bonds in the amount of are irrevocably appropriated for the payment of interest to become due on the Bonds to and including February 1, 1994 and for the payment of a portion of the interest to become due on the Bonds from August 1, 1994 to and including February 1, 1997, and for the payment and redemption of the principal amount of the 1984 Refunded Bonds on February 1, 1997 (the 1984 Bonds Crossover Date) and to the payment and redemption of the principal amount of the 1985 Refunded Bonds on March 1, 1994 (the 1985 Bonds Crossover Date). The City Clerk is hereby authorized and directed, simultaneously with the delivery of the Bonds, to deposit the proceeds thereof, to the extent described above, in escrow with in Minnesota (the Escrow Agent), a banking institution whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500,000, and shall invest the funds so deposited in securities authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision 8, maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to make the above described payments. The Mayor and City Clerk are hereby authorized to enter into an Escrow Agreement with the Escrow Agent establishing the terms and conditions for the escrow account in accordance with Minnesota Statutes, Section 475.67. Of the remaining proceeds of the Bonds, shall be applied to pay issuance expenses and shall be deposited in the Sinking Fund created pursuant to Section 4.02 hereof. Section 4.02. General Obligation Tax Increment Refunding Bond Sinking Fund. The Bonds shall be payable from a separate Series 1993 General Obligation Tax Increment Refunding Bond Sinking Fund (the Sinking Fund) which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. There shall be credited to the Sinking Fund the following: (a) Any amount initially deposited therein pursuant to Section 4.01 hereof. (b) All receipts of principal and interest on the investments held in the escrow account established in Section 4.02 to and including the 1984 Bonds Crossover Date (other than the sum of $775,000 to be used to redeem the 1985 Refunded Bonds on the 1985 Bonds Crossover Date, and the sum of $370,000 to be used to redeem the 1984 Refunded Bonds on the 1984 Bonds Crossover Date). (c) All taxes levied and all other money which may at any time be received for or appropriated to the payment of the principal of or interest on the Bonds, including the tax increments herein pledged and appropriated to the Sinking -14-