HomeMy WebLinkAboutContracts & Agreements_139-2001_CCv0001.pdf ESCROW AGREEMENT FOR
SECURITY DEPOSITS IN LIEU OF RETENTION
ESCROW# 2892-001
To: Bank of Sacramento
Corporate Escrow Dept
P O Box 254706
Sacramento,CA 95865-4706
1. This Letter of Escrow Instructions shall not become binding upon the Escrow Agent until
acknowledged by an authorized officer as indicated on the reverse hereof.
2. The undersigned delivers herewith,or will cause to be delivered to Bank of Sacramento,Corporate
Escrow Services,hereinafter called Escrow Agent,the papers,money or property-hereinafter described
to be held and disposed of by Escrow Agent in accordance with the following instructions and upon
the terms and conditions herein set forth,to which the undersigned hereby agree.
3. This Escrow Agreement is made the 17th day of August,2001.is entered into by and between
City of Redlands whose address is 35 Caion Street,Redlands, CA 92374
hereinafter called"Owner* ;
NBI General Contractors,whose address is 1639 Sessums Drive,Redlands,CA 92374
hereinafter called"Contractor",and Bank of Sacramento,Corporate Escrow Services,whose address
is 1750 Howe Avenue Ste 100,Sacramento,California 95825,hereinafter called"Escrow Agent".
=f. For the consideration hereinafter set forth,the Owner,Contractor,and Escrow Agent agree as follows:
(1) Pursuant to Section 22300 of the Public Contract code of the State of California,Contractor
has the option to deposit securities with Escrow Agent as a substitute for retention earnings
required to be withheld by Owner pursuant to the Construction Contract entered into between
the Owner and Contractor for the City of Redlands Fire Station No.1 Renovation
in the amount of One million four hundred eighty thousand dollars($1,380,000.00).
Contract dated July 31, 2001 (hereinafter referred to as "Contract'). Alternatively, on
written request of the Contractor,the Owner shall make payments of the retention earnings
directly to the Escrow Agent. When Contractor deposits the securities as a substitute for
Contract earnings, the Escrow Agent shall notify the Owner within 10 days of the deposit.
The market value of the securities at the time of the substitution shall be at least equal to the
cash amount then required to be withheld as retention under the terms of the Contract
between the Owner and Contractor. Securities shall be held in the name of City of
Redlands,and shall designate the Contractor as the beneficial owner.
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(ii) The Owner shall make payments progress to the Contractor for such funds which otherwise
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would be withheld from progress payments pursuant to the Contract provisions,provided that
the Escrow Agent holds securities in the form and amount specified above.
(iii) When the Owner makes payment of retention earned directly to the Escrow Agent the Escrow
Agent shall hold them for the benefit of the Contractor until such time as the escrow created
under this Contract is terminated. The Contractor may direct the investment of the payments
into securities. All terms and conditions of this agreement and the rights and responsibilities
of the parties shall be equally applicable and binding when the Owner pays the Escrow Agent
directly.
(iv) The Contractor shall be responsible for paying all fees for the expenses incurred by Escrow
Agent in administering the Escrow Account and all expenses of the Owner. These expenses
and payment terms shall be determined by the Owner,Contractor and Escrow Agent.
(v) The interest earned on the securities or the monev market accounts held in escrow and all
interest earned on that interest shall be for the sole account of Contractor and shall be subject
to withdrawal by Contractor at any time and from time to time without notice to the Owner.
(vi) Contractor shall have the right to withdraw all or any part of the principal in the Escrow
Account only by written notice to Escrow Agent accompanied by written authorization from
Owner to the Escrow Agent that Owner consents to the withdrawal of the amount sought to
be withdrawn by Contractor.
(vii) The Owner shall have a right to draw upon the securities in the event of default by the
Contractor. Upon seven(7)days' written notice to the Escrow Agent from the Owner of the
default,the Escrow Agent shall immediately convert the securities to cash and shall distribute
the cash as instructed by Owner.
(viii) Upon receipt of written notification from the Owner certifying that the Contract is final and
complete., and that the Contractor has complied with all requirements and procedures
applicable to the Contract,Escrow Agent shall release to Contractor all securities and interest
on deposits less escrow fees and charges of the Escrow Agent. The escrow shall be closed
immediately upon disbursement of all monies and securities on deposit and payments of fees
and charges.
(ix) Escrow Agent shall rely upon the written notification from the Owner and Contractor
pursuant to Sections(1)to(8) inclusive,of this Agreement and the Owner and Contractor
shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the
securities and interest as set forth above.
(x) The names of the persons who are authorized to give written notice or to receive written
notice on behalf of the Owner and on behalf of the Contractor in connection with the
foregoing,and exemplars of their respective signatures are as follows:
On behalf of the Owner: On behalf of the Contractor:
City of Redlands Nl4 Genual Co tractors
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Authorized Signer Name Pat Gilbreath JamP. O'Hara,Owner
Authorized Signer Title Mayor 1639 Sessums Drive
35 Cajon Street Redlands,CA 92374
Redlands,CA 92374
Attest: ...
Lcfr7e oyzei Y erg®
On behalf ae Escrow A ent:
Sharon Francis,Vice President
Corporate Escrow Dept
P O Box 254706
Sacramento,CA 95865-4706
At the time the escrow account is opened,the Owner and Contractor shall deliver to the Escrow Agent a fully executed
counterpart of this Agreement.
IN WITNESS WHEREOF,the parties have executed this Agreement by their proper officer on the date first set forth
above.
City of Redlands NBf�eneral�tr ors
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Authorized Signer Name Pat Gilbreath
b JamesI"t O'Hara,Owner
Authorized Signer Title Mayor
Attest:
Io ie Poy/111 City Clerk
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