CC PACKET 03272012 - Laserfiche WebLink

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50 the 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 (c) above. Section 3. Escrow Account and Use of Proceeds. 3.01. Escrow Account. The City Manager 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 Administrator 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 Series 2012 Construction Fund created pursuant Section 5.01 hereof, (b) $ shall be deposited in the Escrow Account established with the Escrow Agent under an Escrow Agreement between the City, the Authority 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 Series 2003 Refunding Bonds to and including the Redemption Date; (ii) to pay all interest to become due on the portion of the Bonds issued to refund the Series 2006A Refunding Bonds to and including the Series 2006A Crossover Date; (iii) to pay all interest to become due on the portion of the Bonds issued to refund the Series 2007A Refunding Bonds to and including the Series 2007A Crossover Date; (iv) to pay and redeem the outstanding principal of the Refunded Series 2003 Bonds on the Redemption Date; (v) to pay and redeem the outstanding principal of the Refunded Series 2006A Bonds on the Series 2006A Crossover Date, and (vi) to pay and redeem the outstanding principal of the Refunded Series 2007A Bonds on the Series 2007A Crossover Date; (c) $ shall be used to pay issuance expenses of the Bonds; and -14-