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securities depository described herein, and thereafter shall issue, register ownership of, transfer and exchange all Bonds as provided in Section 2.03. Upon receipt by the securities depository of notice from the City, the securities depository shall take all actions necessary to assist the City and the Registrar in terminating all arrangements for the issuance of documents evidencing ownership interests in the Bonds through the securities depository. Nothing herein shall affect the securities depository's rights under clause (e) above. Section 3. Escrow Account and Use of Proceeds. 3.01. Escrow Account. The City Finance Director is hereby authorized and directed, simultaneously with the delivery of the Bonds, to deposit the proceeds thereof, to the extent described below, in escrow with [U.S. Bank National Association, in St. Paul, 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 Manager are hereby authorized to enter into an Escrow Agreement with the Escrow Agent for the Refunded Bonds establishing the terms and conditions for the escrow account in accordance with Minnesota Statutes, Section 475.67. 3.02. Use of Proceeds. Upon payment for the Bonds by the Purchaser, the City Manager shall deposit and apply the proceeds of the Bonds as follows: (a) $ shall be deposited in the Escrow Account established with the Escrow Agent under an Escrow Agreement between the City and the Escrow Agent (the "Escrow Agreement"), the funds so deposited, together with funds of the City in such amount as may be required, to be invested in securities authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision 13, maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, (i) to pay all interest to become due on the Bonds to and including the Crossover Date; and (ii) to pay and redeem the outstanding principal of the Refunded Bonds on the Crossover Date; hereof. (b) $ shall be used to pay issuance expenses of the Bonds; and (c) $ shall be deposited in the Bond Fund created pursuant to Section 4.02 Section 4. Security Provisions. 4.01. General Obligation Refunding Bonds, Series 2014C Bond Fund. The Bonds shall be payable from a separate General Obligation Refunding Bonds, Series 2014C Bond Fund (the "Bond Fund") which the City agrees to maintain until the Bonds have been paid in full. If the moneys in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient moneys become available in the Bond Fund. The moneys on hand in the Bond Fund from time to time shall be used only to pay -12-