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City of Everett 00 6125 - 1 <br /> <br />Retainage Escrow Agreement <br />006125-1 202082-10 May 2024 <br />pw://Carollo/Documents/WA/Everett/202082-100000/04 Design/04 Specs/Carollo/006125 (FS-100) <br /> <br />SECTION 00 6125 - RETAINAGE ESCROW AGREEMENT <br /> <br /> <br />Project 20th Street Sewer Rehabilitation Project <br />Contractor <br />Bank <br />RETAINAGE ESCROW AGREEMENT AND INSTRUCTIONS <br /> <br />1. Escrow Agreement. The Contractor on a public improvement project for the City exercised <br />its option pursuant to RCW 60.28.011 to place Retainage in escrow with the Bank. This <br />Agreement constitutes both the escrow agreement between the City and Contractor and <br />instructions to the Bank for handling of the Escrow Account. This Agreement is not effective until <br />(a) the Agreement has been signed by the Contractor, Bank and City and (b) Contractor, Bank <br />and City have entered the appropriate information in Exhibit A. <br /> <br />2. Check Issuance, Endorsement, and Deposit. From time to time, the City will issue a Check <br />payable to the Bank and Contractor jointly. Contractor expressly authorizes and grants the <br />power to the Bank to endorse the check on its behalf, to negotiate the check, collect the funds <br />represented by the Check, and to deposit the funds so collected into the Escrow Account. <br />These powers shall be deemed to be powers coupled with an interest and shall be irrevocable <br />during the term of this escrow. <br /> <br />3. Investment of Funds. Funds and cash balances in the Escrow Account may be invested in <br />Eligible Securities at the direction of the Contractor. For purchase of Eligible Securities, the <br />Bank may follow the last written direction it received from the Contractor, provided such <br />direction provides for investment in Eligible Securities. The Bank shall not invest any funds, <br />cash balances, or proceeds of sale of Eligible Securities in any securities, bonds or accounts <br />that are not Eligible Securities. Eligible Securities purchased pursuant to this Agreement shall <br />be held by the Bank as custodian as part of this escrow. Eligible Securities shall be held in the <br />Bank’s name. Interest on the purchased Eligible Securities, if any, shall be paid to Contractor <br />when, as and if any accrued interest is received by the Bank. <br /> <br />4. Eligible Securities. The following securities are deemed Eligible Securities, and the Bank <br />may invest funds and cash balances in such securities at the direction of Contractor without <br />further approval of the City, provided that any maturity dates are no later than twenty-five (25) <br />calendar days after the Completion Date and provided they are held in a manner and form that <br />allows Bank alone to liquidate the securities as provided for in the Agreement. <br />A. Bills, certificates, notes or bonds of the United States; <br />B. Other obligations of the United States or its agencies; <br />C. Obligations of any corporation wholly owned by the Government of the United States; <br />D. Indebtedness of the Federal National Mortgage Association;