HomeMy WebLinkAbout4249_CCv0001.pdf RESOLUTION NO. 4249
A RESOLUTION OF THE CITY OF REDLANDS
APPROVING A FIRST AMENDED ESCROW AGREE-
MENT RELATING TO THE CITY OF REDLANDS
DOMESTIC WATER TREATMENT FACILITIES 1986
REFUNDING PROJECT AND A FIRST AMENDED
ESCROW AGREEMENT RELATING TO THE CITY OF
REDLANDS 1986 REFUNDING OF THE 1985
PROJECTS AND PARKING STRUCTURE ISSUE
WHEREAS, the City of Redlands ( the "City" ) , Red-
lands Public Improvement Corporation (the "Corporation" ) and
Bank of America National Trust and Savings Association, as
trustee ( the "Trustee" ) have heretofore authorized the
execution and delivery of $24, 540,000 aggregate principal
amount of certificates of participation (the "1986 Water
Certificates" ) pursuant to a trust agreement , dated as of
October 1, 1986 to, among other things, refinance the acqui-
sition, construction and installation of a water treatment
plant and related facilities; and
WHEREAS, pursuant to a trust agreement, dated as of
November 1, 1985, by and between the City and the Trustee,
the City authorized the execution and delivery of certifi-
cates of participation in the aggregate principal amount of
$13, 690,000 ( the "1985 Water Certificates" ) ; and
WHEREAS, the City has deposited with Bank of Amer-
ica National Trust and Savings Association, as escrow bank
( the "Escrow Bank" ) pursuant to an escrow agreement dated as
of October 1, 1986, between the City and the Escrow Bank
( the "Escrow Agreement Relating to the Water Certificates" )
in trust proceeds of the 1986 Water Certificates in the sum
of $15, 438, 359 . 93 which amount, together with interest
earnings thereon, has been verified by Ernst & Whinney,
certified public accountants, to be sufficient to pay the
principal of and interest with respect to the 1985 Water
Certificates as they mature prior to November 1, 1994, and
to call and redeem prior to maturity all of the remaining
outstanding 1985 Water Certificates on November 1, 1994, so
that said 1985 Water Certificates and the payment of princi-
pal and interest and redemption premium, if any, thereon are
defeased and said 1985 Water Certificates are no longer
secured as to payment of principal and interest thereon by a
pledge of and lien upon the net revenues of the City 's Water
System; and
WHEREAS, the City, the Corporation and the Trustee
have heretofore authorized the execution and delivery of
$15, 090, 000 aggregate principal amount of certificates of
participation (the "1986 Projects Certificates" ) pursuant to
a trust agreement, dated as of July 1 , 1986 to, among other
things, refinance the acquisition, construction and instal-
lation of the City ' s Municipal Corporation Yard, Fire
Station No. 3 and certain other public improvements ( the
"Projects" ) ; and
WHEREAS, pursuant to a trust agreement , dated as of
August 1, 1985, by and between the City and the Trustee, the
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City has authorized the execution and delivery of certifi-
cates of participation (City of Redlands 1985 Projects) in
the aggregate principal amount of $10, 860, 000 ( the "1985
Projects Certificates" ) ; and
WHEREAS, the City has deposited with the Escrow
Bank pursuant to the terms of an escrow agreement dated as
of July 1, 1986 between the City and the Escrow Bank ( the
"Escrow Agreement Relating to the 1985 Projects Certifi-
cates" ) in trust proceeds of the 1986 Projects Certificates
in the sum of $12, 640, 694.93 which amount, together with
interest earnings thereon, has been verified by Ernst &
Whinney, certified public accountants, to be sufficient to
pay the principal of and interest with respect to the 1985
Projects Certificates as they mature prior to August 1,
1994, and to call and redeem prior to maturity all of the
remaining outstanding 1985 Projects Certificates on
August 1, 1994, so that said 1985 Projects Certificates and
the payment of principal and interest and redemption pre-
mium, if any, thereon are defeased; and
WHEREAS, the City desires to receive a rating for
the 1985 Water Certificates and the 1985 Projects Certifi-
cates from Moody ' s Investors Service ( "Moody' s" ) reflecting
the security of the investments made pursuant to such escrow
agreements; and
WHEREAS, in order to obtain such a rating from
Moody ' s it is necessary to amend such escrow agreements; and
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WHEREAS, pursuant to the terms of each of the
escrow agreements, the escrow agreements may be amended with
the consent of the parties to such agreements; and
WHEREAS, the City desires to amend the escrow
agreements in order to enhance the marketability of the 1985
Water Certificates and the 1985 Projects Certificates; and
WHEREAS, there has been presented to this meeting a
form of First Amended Escrow Agreement Relating to City of
Redlands Domestic Water Treatment Facilities 1986 Refunding
Project and a form of First Amended Escrow Agreement Relat-
ing to City of Redlands 1986 Refunding of the 1985 Projects
and Parking Structure Issue;
NOW, THEREFORE, BE IT RESOLVED by the City of
Redlands as follows :
Section 1 . Recitals. The above recitals, and each
of them, are true and correct.
Section 2 . First Amended Escrow Agreements . The
form of First Amended Escrow Agreement Relating to City of
Redlands Domestic Water Facilities 1986 Refunding Project
and First Amended Escrow Agreement Relating to City of
Redlands 1986 Refunding of the 1985 Projects and Parking
Structure Issue as presented to this meeting by and between
the City and the Escrow Bank is hereby approved and the
Mayor or the Mayor Pro Tem and the City Clerk of the City
are hereby authorized and directed, for and in the name of
the City, to execute a First Amended Escrow Agreement Relat-
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ing to City of Redlands Domestic Water Facilities 1986
Refunding Project and a First Amended Escrow Agreement
Relating to City of Redlands 1986 Refunding of the 1985
Projects and Parking Structure Issue in substantially the
forms hereby approved, with such nonsubstantive changes
therein as the officers executing the same may approve, such
approval to be conclusively evidenced by the execution and
delivery thereof .
Section 3 . Other Acts . The officers of the City
are hereby authorized and directed, jointly and separate, to
do any and all things, to execute and deliver any and all
documents which, in consultation with the Staff and Special
Counsel , they may deem necessary or advisable in order to
effectuate the purposes of this Resolution, and any such
actions previously taken by such officers are hereby rati-
fied and confirmed.
Section 4 . Effective Date . This Resolution shall
take effect immediately upon adoption.
ADOPTED this 5th day of May 1987 .
CITY OF REDLANDS
Mayor
ATTEST;
Deputy City Clerk
_5_
i
I
CERTIFICATE
I , Lorrie Poyzer , City Clerk of the City of Red-
lands, do hereby certify that the foregoing Resolution was
regularly introduced and adopted by the City of Redlands, at
a regular meeting thereof held on the 5th day of
May -- r 1987 by the following vote of the Board of
the City:
AYES: Councilmembers Larsen, DeMirjyn, Johnson, Wormser
Mayor Beswick
NOES: None
ABSENT: None
ABSTAINED: None
IN WITNESS WHEREOF, I have hereunto set my hand this
5th__ day of Mai? _r 1987 .
4egtyy city Clerk, City, f
Redlands
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DPB0034
4/3/87
FIRST AMENDED
ESCROW AGREEMENT
RELATING TO CITY OF REDLANDS
1986 REFUNDING OF THE 1985 PROJECTS
AND PARKING STRUCTURE ISSUE
Dated as of May 1, 1987
by and between
THE CITY OF REDLANDS
and
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
as Escrow Bank
TABLE OF CONTENTS
Page
Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Preambles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1 . Creation of Escrow Fund. . . . . . . . . . . . . . 2
Section 2 . Purpose of Escrow Fund. . . . . . . . . . . . . . . 2
Section 3. Deposit of Funds. . . . . . . . . . . . . . . . . . . . . 3
Section 4 . Instruction to Escrow Bank. . . . . . . . . . 3
Section 5 . Investments. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 6. Application of Funds. . . . . . . . . . . . . . . . . 4
Section 7 . Disposition and Substitution
of Investments. . . . . . . . . . . . . . . . . . . . . . . 4
Section 8. Insufficient Funds. . . . . . . . . . . . . . . . . . . 5
Section 9. Lien of Certificateholders. . . . . . . . . . . 5
Section 10 . Fees of Escrow Bank;
Indemnification. . . . . . . . . . . . . . . . . . . . . . 6
Section 11. Partial Invalidity. . . . . . . . . . . . . . . . . . . 6
Section 12. Successors. . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 13 . Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 14 . Amendments, Changes and
Modifications. . . . . . . . . . . . . . . . . . . . . . . . 7
Section 15. Applicable Law. . . . . . . . . . . . . . . . . . . . . . . 7
Section 16. Headings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 17. Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 18. Unclaimed Funds. . . . . . . . . . . . . . . . . . . . . . 8
Exhibit A Investment of Escrow Fund
JRR0447A
FIRST AMENDED
ESCROW AGREEMENT
This First Amended Escrow Agreement is made and
entered into as of the 1st day of May, 1987, by and between
the CITY OF REDLANDS, a general law city duly organized and
existing under the laws of the State of California ( the
"City" ) , and BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION, a national banking association duly organized
and existing under the laws of the United States of America
( the "Escrow Bank" ) ;
W I T N E S S E T H:
WHEREAS, the City, the Escrow Bank and Redlands
Public Improvement Corporation ( the "Corporation" ) have
entered into a Trust Agreement dated as of July 1, 1986 ( the
"Trust Agreement" ) whereby the Escrow Bank, as trustee under
the Trust Agreement , has agreed to execute and deliver
Certificates of Participation in the aggregate principal
amount of $15,090, 000 ( the "Certificates" ) to finance and
refinance the acquisition, construction and installation of
certain public improvements ( the "Projects" ) more particu-
larly described in a lease agreement, dated as of July 1,
1986, by and between the City and the Corporation (the
"Lease Agreement" ) ; and
WHEREAS, pursuant to a trust agreement, dated as of
August 1, 1985, by and between the City and Bank of America
National Trust and Savings Association (the 111985 Trust
Agreement" ) , the City has authorized the execution and
delivery of Certificates of Participation (City of Redlands
1985 Projects) in the aggregate principal amount of
$10, 860,000 (the "1985 Certificates" ) ; and
WHEREAS, the outstanding 1985 Certificates, matur-
ing on and after August 1, 1995, may be called and redeemed
on any interest payment date (August 1 or February 1) , on or
after August 1, 1994; and
WHEREAS, the Escrow Bank has been appointed by the
City as trustee under the 1985 Trust Agreement and is acting
as Trustee with respect to the 1985 Certificates; and
WHEREAS, the Trust Agreement provides that the City
shall provide to and deposit with the Escrow Bank in trust
the sum of $12 , 640 , 694 . 93 which amount, together with inter-
est earnings thereon, has been verified by Ernst & Whinney,
certified public accountants, to be sufficient to pay the
principal of and interest with respect to the 1985 Certifi-
cates as they mature prior to August 1, 1994, and to call
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and redeem prior to maturity all of the remaining outstand-
ing 1985 Certificates on August 1, 1994, so that said 1985
Certificates and the payment of principal and interest and
redemption premium, if any, thereon will be defeased; and
WHEREAS, the City and the Escrow Bank have hereto-
fore entered into an Escrow Agreement dated as of July 1,
1986 ( the "Escrow Agreement" ) providing for the deposit of
$12,640,694. 93 and the application thereof to the payment of
interest and principal components of the 1985 Certificates;
and
WHEREAS, the City and the Escrow Bank desire to
amend the Escrow Agreement so that the 1985 Certificates may
receive a rating from Moody ' s Investors Service reflecting
the security of the investments made pursuant to the -Escrow
Agreement; and
WHEREAS, the City and the Escrow Bank have deter-
mined that the proposed changes to the Escrow Agreement
shall not adversely affect the interests of the owners of
the 1985 Certificates.
NOW, THEREFORE, in consideration of the premises
and the mutual covenants contained herein, the parties
hereto agree that the Escrow Agreement shall be amended in
its entirety to read as follows:
Section 1 . Creation of Escrow Fund. The Escrow
Bank hereby creates and establishes the Escrow Fund as a
special trust fund separate and apart from any other funds
of the City or the Escrow Bank, and agrees to use the monies
and the investments deposited therein and all earnings
thereon solely for the purposes required or permitted in
this Agreement . The Escrow Fund will be established by the
deposit by the City with the Escrow Bank of the sum of
$12,050, 393. 68 from the proceeds of the Certificates and
$590, 301. 25 from special funds held by the trustee under the
trust agreement for the 1985 Certificates.
Section 2 . Purpose of Escrow Fund. The Escrow
Bank shall withdraw monies from the Escrow Fund in suffi-
cient amounts and at the times necessary to make the princi-
pal and interest payments, without default, with respect to
the outstanding 1985 Certificates as required by the 1985
Trust Agreement and the Original Lease Agreement , and to
cause the call and redemption of all of the remaining out-
standing 1985 Certificates, at the redemption prices and
upon the terms and conditions specified in the 1985 Trust
Agreement. The Escrow Bank is irrevocably committed to make
such principal and interest payments and to call and redeem
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the 1985 Certificates to the extent that there are suffi-
cient monies, investments and investment earnings on deposit
in the Escrow Fund. At the appropriate times before the
interest payment dates, principal payment dates and redemp-
tion dates with respect to said 1985 Certificates, as pro-
vided in the 1985 Trust Agreement, the Escrow Bank shall
transmit monies from the Escrow Fund in such amounts as are
necessary to pay such principal, interest and redemption
prices to the trustee for the 1985 Certificates appointed
and acting under the 1985 Trust Agreement, and such monies
shall be held separate and apart from all other funds for
the benefit of and paid to the owners of the 1985 Certifi-
cates.
Section 3. Deposit of Funds. In order to provide
for the payment of the principal, interest and redemption
premium with respect to the 1985 Certificates, the City
shall on the Closing Date (as defined in the Trust Agree-
ment) deposit with the Escrow Bank, in trust for the benefit
of the owners of the 1985 Certificates, subject to the terms
and conditions hereinafter set forth, the sum of
$12,640,694 . 93. The Escrow Bank agrees to deposit said sum
into the Escrow Fund.
Section 4. Instruction to Escrow Bank . The City
hereby irrevocably instructs the Escrow Bank to make the
payments of interest and principal with respect to the 1985
Certificates, without default, and to call and redeem the
remaining outstanding 1985 Certificates on August 1, 1994.
The Escrow Bank as trustee for the 1985 Certificates is
hereby authorized and directed and agrees to publish the
notices required pursuant to the 1985 Trust Agreement with
respect to the call and redemption of the remaining out-
standing 1985 Certificates, and to take such other action as
is required by said 1985 Trust Agreement with respect to the
call and redemption of said 1985 Certificates.
Section 5 . Investments. On the Closing Date, the
Escrow Bank shall, at the direction of the City Treasurer of
the City, invest the sum deposited in the Escrow Fund pur-
suant to Section 3 hereof in the Federal Securities identi-
fied in Exhibit A attached hereto and incorporated herein by
reference (the "Federal Securities" ) . The City represents
that such Federal Securities are non-callable and shall
mature and bear interest payable in such amounts and at such
times as will be sufficient, to pay the principal, redemp-
tion premium and interest payments on the 1985 Certificates
as such become due and to redeem the outstanding 1985 Cer-
tificates on August 1, 1994, as provided in Section 4
hereof . The Escrow Bank shall hold all such Federal Securi-
ties and all earnings thereon in the Escrow Fund; and shall
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f
apply the same only for the purposes and in the manner
provided in this Agreement . The Escrow Bank shall not be
liable or responsible for any loss resulting from any
investment made pursuant to this Agreement and in full
compliance with the provisions hereof.
Section 6. Application of Funds. The Escrow Bank
shall collect on the due date thereof the principal of, the
premium, if any, and the earnings on the Federal Securities
on deposit in the Escrow Fund. The Escrow Bank shall,
without further authorization or direction from the City,
apply monies and Federal Securities on deposit in the Escrow
Fund on each date upon which an installment of interest or
principal on the 1985 Certificates is due to the payment on
each such date of such installment. The Escrow Bank shall
apply the balance of the -monies in the Escrow Fund, as
necessary, to the payment of ' the principal; redemption
premium, if any, and interest on the remaining outstanding
1985 Certificates which have been called for redemption as
provided in Section 4 hereof. Any monies remaining in the
Escrow Fund after payment of all such installments of prin-
cipal and interest and such application of the balance of
the monies on deposit therein shall be paid by the Escrow
Bank to the City.
Section 7. Disposition and Substitution of Invest-
ments . Upon the written request of the City, subject to the
conditions and limitations hereinafter set forth and appli-
cable government rules and regulations, the Escrow Bank
shall sell, redeem or otherwise dispose of Federal Securi-
ties on deposit in the Escrow Fund, if there are substituted
therefor, from the proceeds of such Federal Securities, at
the direction of the City, other non-callable Federal Secur-
ities, as defined in the 1985 Lease Agreement, in amounts
sufficient to make the payments required by Section 4
hereof . Neither the Federal Securities initially purchased
pursuant to this Escrow Agreement nor any Federal Securities
substituted therefor or otherwise acquired with moneys
deposited hereunder shall be subject to call and redemption
prior to their respective maturities at the option and call
of their respective issuers. The City will not request the
Escrow Bank , nor will the Escrow Bank be required, to exer-
cise any powers or take any action which would have the
effect of causing any of the 1985 Certificates or the Cer-
tificates to be "arbitrage bonds" as defined in Sec-
tion 103 (c) of the Internal Revenue Code of 1954, as
amended, and the regulations of the United States Department
of the Treasury issued thereunder . The Escrow Bank shall
dispose of Federal Securities on deposit in the Escrow Fund
and purchase substitute securities only upon receipt of:
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(a) a written report of a nationally recog-
nized firm of independent certified public accountants
acceptable to the Escrow Bank to the effect that the substi-
tute securities will mature in such principal amounts and
earn interest on such amounts and at such times that suffi-
cient monies will be available to pay, as the same become
due, all principal and interest payments on the 1985 Certif-
icates and to provide for the redemption prior to maturity
of the remaining outstanding 1985 Certificates, as herein
provided; and
(b) an unqualified legal opinion of a nation-
ally recognized bond counsel firm to the effect that such
disposition of Federal Securities in the Escrow Fund and
purchase of substitute Federal Securities will not cause the
said bonds or any of them or the Certificates to be "arbi-
trage bonds" as defined in Section 103 (c) of the Internal
Revenue Code of 1954, as amended, and the regulations of the
United States Department of Treasury issued thereunder.
Section 8. Insufficient Funds .
(a) If at any time it shall appear to the
Escrow Bank that the monies and investments in the Escrow
Fund, including the anticipated proceeds of and earnings on
the investments, will not be sufficient, to make all pay-
ments required by this Agreement, the Escrow Bank shall
notify the City in writing, immediately upon becoming aware
of such deficiency, of the amount thereof and the reason
therefor .
(b) Thereupon the City shall deposit into the
Escrow Fund within seven (7 ) days of such notification by
the Escrow Bank, from any legally available funds, such
additional monies as may be required to meet full or aggre-
gate amounts to become due and payable for the interest
installments, premium and principal on the 1985 Certificates
and for the redemption of the remaining outstanding 1985
Certificates on August 1, 1994 .
(c) The Escrow Bank shall in no manner be
responsible for the City' s failure to make any such deposit
if the Escrow Bank shall have notified the City as soon as
is reasonably practicable of the need for such additional
monies.
Section 9 . Lien of Certificateholders. The escrow
created hereby shall be irrevocable and the owners of the
1985 Certificates shall have an express lien on all monies
and investments on deposit in the Escrow Fund until paid
out, used or applied in accordance with this Agreement.
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Section 10 . Fees of Escrow Hank; Indemnifica-
tion. The Escrow Hank ' s fees and costs in consideration of
the services rendered and to be rendered by the Escrow Bank
in carrying out the provisions of this Agreement have been
fixed at $3,000 .00, which amount is to be paid to the Escrow
Bank by the City annually. The Escrow Bank will be compen-
sated separately and in accordance with the Trust Agreement
for its services rendered as the Trustee and in accordance
with the 1985 Trust Agreement, for its services rendered as
trustee thereunder . The Escrow Bank shall have no lien
whatsoever upon any of the monies or investments in the
Escrow Fund for the payment of such fees and expenses. The
City hereby assumes liability for, and hereby agrees
(whether or not any of the transactions contemplated hereby
are consummated) to indemnify, protect, save and hold harm-
less the Escrow Bank and its successors, assigns, officers,
agents and employees from and against any and all liabili-
ties, obligations, losses, damages, penalties, claims,
actions, suits, costs, expenses, and disbursements ( includ-
ing legal fees and disbursements) of whatsoever kind or
nature which may at any time be imposed on, incurred by, or
asserted against the Escrow Bank (whether or not also indem-
nified against by the City or any other person under any
other agreement or instrument) and in any way relating to or
arising out of the execution or delivery of this Agreement,
the establishment of the Escrow Fund, the retention and
investment of the monies therein, or any payment , transfer
or other application of monies or investments by the Escrow
Bank in accordance with the provisions of this Agreement, or
as may arise by reason of any act, omission or error of the
Escrow Bank made in good faith in the conduct of its duties;
provided, however , that the City shall not be required to
indemnify the Escrow Bank against its own negligence, active
or passive, or misconduct. In no event shall the City be
liable to any person other than the Escrow Bank by reason of
the transactions contemplated hereby. The indemnities
contained in this Section shall survive the termination of
this Agreement . All monies remaining in the Escrow Fund
pursuant to this Agreement upon redemption in full of the
1985 Certificates, and the payment of all interest due
thereon prior to and upon the payment or redemption thereof ,
shall be remitted by the Escrow Bank to the City and shall
be used and applied by the City for any lawful purpose.
Section 11. Partial Invalidity. In the event any
provision of this Agreement shall be held invalid or unen-
forceable by any court of competent jurisdiction, such
holding shall not invalidate or render unenforceable any
other provision hereof.
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Section 12. Successors. Whenever herein the City
or the Escrow Bank are named or referred to, such provision
shall be deemed to include any successor of the City or the
Escrow Bank, respectively, immediate or intermediate,
whether so expressed or not . All the stipulations, obliga-
tions and agreements by or on behalf of, and other pro-
visions for the benefit of the City or the Escrow Bank
contained herein:
(a) shall bind and inure to the benefit of
any such successor; and
(b) shall bind and inure to the benefit of
any officer, board, authority, agent or instrumentality to
whom or to which there shall be transferred by or in accor-
dance with law any right, power or duty of the City or the
Escrow Bank, respectively, or of its successor, the posses-
sion of which is necessary or appropriate to comply with any
such stipulations, obligations, agreements or other provi-
sions hereof.
Section 13 . Counterparts. This Agreement may be
executed in several counterparts, all or any of which shall
be regarded for all purposes as an original and shall con-
stitute and be but one and the same instrument.
Section 14. Amendments, Changes and Modifica-
tions. This Agreement may not be effectively amended,
changed, modified, altered or terminated without the written
agreement of both parties hereto and no amendment which
adversely affects the rights of the owners of the 1985
Certificates shall be effective. Notwithstanding the fore-
going, this Agreement may only be amended for purposes of
( i) curing any ambiguity, or curing, correcting or supple-
menting any defective provision, which shall not adversely
affect the rights of the owners of the 1985 Certificates;
( ii ) to add to the covenants or agreements of the Agency or
the Escrow Bank in this Agreement contained; or ( iii ) to
delete any clause held to be illegal .
Section 15. Applicable Law. This Agreement shall
be governed by and construed in accordance with the laws of
the State of California.
Section 16. Headings. The captions or headings in
this Agreement are for convenience only and in no way
define, limit or describe the scope or intent of any provi-
sions or sections of this Agreement .
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Section 17 . Notices . Any notices or filings
required to be given or made under this Agreement shall be
served, given or made in writing upon the City by personal
delivery or registered mail addressed to:
City of Redlands
City Hall
30 Cajon Street
Redlands, California 92373
Attention: Chief Financial Officer
and upon the Escrow Bank by personal delivery or registered
mail addressed to:
Bank of America
555 South Flower Street
Fifth Floor
Los Angeles, California 90071
Attention: Corporate Trust Administration 8510
or at such other place as may be designated by either party
in writing.
Section 18 . Unclaimed Funds. Notwithstanding any
other provision of this Agreement, any money held by the
Escrow Bank hereunder in trust for the payment of the prin-
cipal of , and interest on, the 1985 Certificates and remain-
ing unclaimed for four ( 4) years after the principal of all
of the 1985 Certificates shall have become due for payment,
shall then be repaid to the City and the holders and owners
of the 1985 Certificates shall thereafter be entitled to
look only to the City for the repayment thereof, and liabil-
ity of the Escrow Bank with respect to such money shall
thereupon cease. In the event of the repayment of any such
money to the City as aforesaid, the holders of the 1985
Certificates secured hereby with respect to which such money
was deposited shall thereafter be deemed to be unsecured
creditors of the City, without interest . Notwithstanding
the foregoing, the Escrow Bank shall, upon the written
request of the City, repay such money to the City at any
time earlier than four ( 4) years, if failure to repay such
money to the City within such earlier period shall give rise
to the operation of any escheat statute under applicable
law.
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IN WITNESS WHEREOF, the parties hereto have exe-
cuted this First Amended Escrow Agreement as of the date and
year first above written.
CITY OF REDLANDS
By:
Mayor
ATTEST:
City Clerk
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
By:
Trust Officer
ATTEST:
Assistant Secretary
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JRR0447
EXHIBIT A
INVESTMENT OF ESCROW FUND
1 . Cash $490, 301 . 24
PrIReLos
t
Maturity lsteraac /.mount 4ecrw#
2 . prurijtten pace Lata T1e1# Purchase# /rtce Coac Interest 'ecaL Cast
U.1. Treuury Noce 1/3L/I1 9.7p2 1 205.000.00 101.7X412 1 208.$54.44 ! 204.571.64
U.1. Treasury Nota 7/31/87 8.8751 31!.000.00 102.50649t 722.196.70 322.116.70
U.S. Tres wry last• 1/31/88 &.1252 225.000.00 102.216751 229,992.19 229.992.19
U.S. Tre0jeury Meta 711$/" 1&.000! 138.000.114 1L3.561502 343,141.24 1 1.057.31 34S.19t.64
U.S. Treasury Roca 1/15/89 14.6252 253.000.00 117.437501 217,116.48 1.604.75 274.?25.13
U.1. Treasury Mata 7115/19 14.3001 181,000.00 L19.161252 656.364.56 2,601.94 ait.'61.52
U.1. Tru wry Noce ills/90 10.$00& 216.000.00 110.312502 326.725.00 1.151.30 327,176.30
U.S. Treswry Noce 7115/10 10.7$0% 411,000.00 112.25000t "3.797.so 2.014.66 645.111.%
U.S. Treasury Nota 1/15/91 11.75011 3)0.000.00 116.906232 345,790.43 1.N 5.17 347,&76.50
U.S. Treasury Meta 7/15/91 13.7302 474.000.00 126.464751 59!,661." 2.133.70 402.215.51
U.S. Treasury Mete t/ls/92 11.423& 377,000.00 111.168752 "a.312.it 1.905.49 650,617.64
U.S. Treasury Note 7115/92 10.375& 534,000,00 114.437!02 61110%.25 2.406.10 613.505.05
U.B. Tr as wry rota L/15/93 8.7502 622.000.00 107.312302 452.1158.75 1.605.43 656..6..11
U.S. Treasury Mete 11/13/93 11.7502 633.000.00 124.14%2Z !]7,367./$ 50,4+!•$6 $44.213.61
U.J. Treasury MIPS 5/15193 0.0001 541.000.00 61.252302 342.001.09 362.001.01
U.S. Trasaary STLIPS 5115/% 0.0002 10.672,000.00 56.}46302 6.013,440.$& 4.D13.a90.51
516,277,000.00 $12,119,874.91 130,514.'2 s12,t50.313.6�
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