IO Environmental and Infrastructure Inc Smith Street Cleanup and Fill Project

' City of Everett 00 61 25 - 1 3600 Smith Street Clean Up SECTION 00 61 25 - RETAINAGE ESCROW AGREEMENT Project 3600 Smith Street Clean Up Contractor ' c/rr OF Bank 1 RETAINAGE ESCROW AGREEMENT AND INSTRUCTIONS 1. Escrow Agreement. The Contractor on a public improvement project for the City exercised ' its option pursuant to RCW 60.28.011 (1994) to place Retainage in escrow with the Bank. This Agreement constitutes both the escrow agreement between the City and Contractor and instructions to the Bank for handling of the Escrow Account. This Agreement is not effective ' until (a) the Agreement has been signed by the Contractor, Bank and City and (b) Contractor, Bank and City have entered the appropriate infoimation in Exhibit A. ' 2. Check Issuance, Endorsement, and Deposit. From time to time, the City will issue a Check payable to the Bank and Contractor jointly. Contractor expressly authorizes and grants the power to the Bank to endorse the check on its behalf, to negotiate the check, collect the funds represented by the Check, and to deposit the funds so collected into the Escrow Account. These powers shall be deemed to be powers coupled with an interest and shall be irrevocable during the term of this escrow. 3. Investment of Funds. Funds and cash balances in the Escrow Account may be invested in Eligible Securities at the direction of the Contractor. For purchase of Eligible Securities, the Bank may follow the last written direction it received from the Contractor, provided such direction provides for investment in Eligible Securities. The Bank shall not invest any funds, cash balances, or proceeds of sale of Eligible Securities in any securities, bonds or accounts that are not Eligible Securities. Eligible Securities purchased pursuant to this Agreement shall be held by the Bank as custodian as part of this escrow. Eligible Securities shall be held in the Bank's name. Interest on the purchased Eligible Securities, if any, shall be paid to Contractor when, as and if any accrued interest is received by the Bank. ' 4. Eligible Securities. The following securities are deemed Eligible Securities, and the Bank may invest funds and cash balances in such securities at the direction of Contractor without further approval of the City, provided that any maturity dates are no later than twenty-five (25) calendar days after the Completion Date and provided they are held in a manner and foul' that allows Bank alone to liquidate the securities as provided for in the Agreement. A. Bills, certificates, notes or bonds of the United States; 00 61 25 - 1 RETAINAGE ESCROW AGREEMENT 1