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Net Effective lnt.nlt Rate 4.214&' .. SavID.p or Refunded Bond.I 10.21'10\ , SaV1ngB of Retundina Bond. e.S898\ The doUar value of such debt lervice or interest C08t _vinp (Reduct1on) II. $1.088,559. and the present value ot the Deduction I. $912.398. The dollar amount of the Red.ucdQD is 10.58\ of the debt service intsNst COlt on the Refunded Bonds. The Reduction. after the inclusion of all authorized expenses or retundini; in the COPiputation of the effecUvemterest rate on the Bonds, III adequate to authorize the ia.uance of the Bonda as provided by Section 475.87, Subdiria10n 12 of MInnesota Statut... ! . 02. It 1& nece8aary to purchase from Bond proceeds mV8.tment .ecurities 'l'8qulred to fund the Escrow Account pursuant to this It_olution. Tbe Finance Director 18 hereby authorized and directed to purohase for and on beha1t of the City and in ita name, appropriaté seoul'itin to fund the Escrow Account. Upon the issuance and deli~eJ7' of the Bonda, thé securities 80 purchased shall be deposited with the Es01'OW Age~t and held pursuant to the term. or the Eacrow Agreement and the Resolution. Aa of the date of delivery of and payment for!' the Bonds the proceeds of the Bonds (Proceeds), in the amount of $5.540,000 together with other funds (Funds) in the amount of $107,481.25 aN horeby appropriated for liuch purpose a5 shall be ¡lecessary to pay the principal of, interest on and redemption premium (if 8.Dy) on the Refunded Bond~ to their maturity or the date 011 whioh they are called for redemption, whichever date1s earlier, less necessary expenses of the issuance of the Bonds and less my amount Qf Proceeds in e;x:cess of $8.563,800 required to be deposited in the Debt SenYice Fund, and are hereby pledged and appropriated and shall be deposited in an escrow account (Esorow Account) with Norwest Bank Minnesota. Minneapolis, Minnesota, a suitable financial institution within tbe state, whose deposita are insured by the Federal Deposit Insurance CorporatioD, who.. colDbined capital and surplus is not less than $500,000 and &aid financial institution is hereby designated es~row apnt (Eacrow Apnt) for 8uch funds. The Proceeds and Funds ¡hall be jnvested in securities maturing or caUable at the option of the holder on such dateS and bearinar; interest at such rates as shaU be 1'êqui.red to provide sutfic1ent funds, together with any casb ot' other funds Ntained in the Escrow Account, to pay when due the interest to &001'\18 on each of the Refunded Bonds at maturity or on the date on whioh it ia oallod a8 herein provided and to pay the principal amount of saob. suoh ob1:lgation at maturity or on the date on which it has been caned for l'êdemption and to pay any premium req\Üred for redemption on such date. Tho monies in the Escrow Account shall be used solely for the purposes herein set forth and for no other purpose, except that if any surplus shall remain In tha Esorow Aocount aftel' aU of the Refunded Bonds and mtarest (and any premium) theréOD are paic1, then such balance shall be transferrod to the City. NotwithøtandJn&, anything to the contrary lu this Seotion 5.02, the Refunded Bonds cons1øt1ng of the City's $4 J 500,000 General ObUP.tioD Improvement Bonds, Series 14, dated March 1, 1988, of which $3.335,000 in principal amount is outstanding and 5ubjeot to redemption on March 1, 1994 (the "Series 14 Bond.IIiI") will be redeemed and prepaid in aocordance with their terms from Proceeds in the amount of $3,030,880 together with Fundu in the amount of $411,S71, which Proceeds and Funds sha11 not be p18d~ed or appropriated to the Escrow Account under tbe terms of the EliJc1"OW Agreement. S. 03. No portion or the proceeds of the Bonds will bo used directly 01' indirectly to acquire higher yieldin¡ invBstments or to replaoe funds which were onln,. "'200-13 ~2