HomeMy WebLinkAboutContracts & Agreements_2-2008_CCv0001.pdf Escrow No: 22706
ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
This escrow Agreement is made and entered into by and between the City Of Redlands, whose address is 35 Cajon
Street, Redlands, CA 921373 , hereinafter referred to as "Owner". A S R Constructors Inc whose address is 5230
Wilson St, Riverside, CA 92509 hereinafter referred to as "Contractor", and Union Bank of California, whose
address is 1980 SATURN STREET, MONTEREY PARK,CA 91755 hereinafter referred to as "Escrow Agent".
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 Owner and Contractor for Project: Sports Park
Restroom Building #658 in the amount of$533,000.00 , dated October 01, 2007 (hereinafter, referred to as
the ("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 ten 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.
1 The Owner shall make progress payments to the Contractor for those funds which otherwise would be withheld
from progress payments pursuant to the Contract provisions, provided that the Escrow Agent hold securities in
the form and amount specified above.
3. When the Owner makes payment of retention's earned directly to the Escrow Agent, the Escrow Agent shall
hold them for the benefit of the Contractor until the time that 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.
4. 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.
5. The interest earned on the securities or the money 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 Owner.
6. 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 the Owner to the Escrow Agent that
Owner consents to the withdrawal of the amount sought to be withdrawn by Contractor.
7. The Owner shall have a right to draw upon the securities in the event of default by Contractor. Upon seven
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 the Owner,
& 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 deposit less escrow fees and charges of the Escrow
Account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit
and payments of fees and charges.
9, Escrow Agent shall rely on the written notifications from the Owner and the Contractor pursuant to Sections 5)
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,
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10. 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 Owner: On behalf of Contractor:
City Of Redlands ATTEST A S R Constructors Inc
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Name Jon Harrison Lorrie Poyzer Name-,
Mavor IN
Citv Clerk \nf
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Address: Address:
35 Cajon Street 5230 Wilson St
Redlands,CA 92373 Riverside,CA 92509
Telephone: 909-307-5300 Telephone: 951-779-6580
On behalf of Escrow Agent:
UNION BANK OF CALIFORNIA
Cindy De Kruyf
Vice President
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Address:
UNION BANK OF CALIFORNIA
1980 SATURN STREET,V03-012
MONTEREY PARK,CA 91755
Telephone: (800)669-8661
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 officers on the date first se
forth above.
OWN CONTRACTOR:
CONTRACTOR:
By. By:
Hatrison, Mayor U,!
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By: By:
Lor r
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