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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, 1996, the principal amount of each <br /> of the Refunded Bonds and (2) all interest which accrues on <br /> the Bonds prior to February 1, 1996. The moneys in the Escrow <br /> Account shall be used solely for the purposes herein set forth <br /> and for no other purpose, except that any surplus in the <br /> Escrow Account shall be remitted to the City, all in <br /> accordance with the terms of the Escrow Agreement. Such Other <br /> Funds, if any, as may be required to fully fund the Escrow <br /> Account as described above are hereby appropriated for said <br /> purpose and their investment and disbursement provided in the <br /> Escrow Agreement are hereby authorized and approved. <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 Bonds prior to <br /> February 1, 1996; (3) any balance remaining on February 1, <br /> 1996, in the Debt Service Account created for the Prior Bonds <br /> pursuant to Section 5 of the Council' s Resolution No. 2284, <br /> adopted on January 11, 1988, in connection with the issuance <br /> of the Prior Bonds, provided that all of the principal of and <br /> interest due on the Prior Bonds shall have been paid on or <br /> before said date; (4) the Available Tax Increments, as defined <br /> in and limited by the Tax Increment Pledge Agreement described <br /> in paragraph 26 hereof, provided that the amounts thereof so <br /> pledged to the payment of the Bonds shall not exceed amounts <br /> necessary, when combined with other funds available for such <br /> purposes in the Debt Service Account, to pay the principal of <br /> and interest on the Bonds, when due; (5) all collections of <br /> any ad valorem taxes hereafter levied for the payment of the <br /> Bonds; (6) all investment earnings on funds held in the Debt <br /> Service Account; and (7) any amounts received by the City upon <br /> 262142.1 14 <br />