Agenda Packets - 1993/05/10 - Laserfiche WebLink

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(i) Escrow Account. The proceeds of the sale of the Bonds, less such proceeds of the Bonds (if any) as may be used to pay issuance expenses or hereinafter directed for deposit into the Debt Service Account, plus any other available municipal funds ("Other Funds") , if any, as may be required to adequately fund the Escrow Account (under the Escrow Agreement) to accomplish its purposes, are hereby pledged and appropriated and shall be credited to the Escrow Account. The Escrow Account shall be maintained as an escrow account with the Escrow Agent which is and shall be a suitable financial institution within the State of Minnesota whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is at least $500,000. All proceeds of the sale of the Bonds to be received by the Escrow Agent shall be applied to fund the Escrow Account or to pay costs of issuing the Bonds. Such proceeds of the Bonds (together with the Other Funds, if any) which are not used by the Escrow Agent to pay costs of issuance of the Bonds are hereby irrevocably pledged and appropriated to the Escrow Account, together with all investment earnings thereon. The Escrow Account shall be invested in securities maturing or callable at the option of the holder thereof on such dates and bearing interest at such rates as shall be required to provide funds sufficient, together with any cash or other funds retained in the Escrow Account, to pay (1) when called for redemption on February 1, 2000, the principal amount of each of the Refunded Bonds and (2) all interest which accrues on the Bonds prior to February 1, 2000. The moneys in the Escrow Account shall be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account shall be remitted to the City, all in accordance with the terms of the Escrow Agreement. Such Other Funds, if any, as may be required to fully fund the Escrow Account as described above are hereby appropriated for said purpose and their investment and disbursement provided in the Escrow Agreement are hereby authorized and approved. (ii) Debt Service Account. To the Debt Service Account there are hereby pledged and irrevocably appropriated and there shall be credited: (1) all accrued interest received upon delivery of the Bonds which is not then deposited into the Escrow Account; (2) the amounts required to be paid to the Bond Registrar by the Escrow Agent from the Escrow Account pursuant to the Escrow Agreement to provide prompt and full payment of the interest which accrues on the Bonds prior to February 1, 2000; (3) any balance remaining on February 1, 2000, in the Debt Service Account created for the Prior Bonds pursuant to paragraph 16 of the Council's Resolution No. 4073, adopted on April 22, 1991, in connection with the issuance of the Prior Bonds, provided that all of the principal of and interest due on the Prior Bonds shall have been paid on or before said date; (4) the net revenues of the City's municipal 238053 16