Ordinance 3405-14 - Laserfiche WebLink

any such insufficiency shall be given promptly as hereinafter provided, but the Refunding Trustee shall not in any manner be responsible for any insufficiency of funds in the Escrow Fund or the City's failure to make additional deposits thereto. Section 3.4. Trust Fund. The Refunding Trustee or its affiliate shall hold at all times the Escrow Fund, the Escrowed Securities and all other assets of the Escrow Fund, wholly segregated from all other funds and securities on deposit with the Refunding Trustee; it shall never allow the Escrowed Securities or any other assets of the Escrow Fund to be commingled with any other funds or securities of the Refunding Trustee; and it shall hold and dispose of the assets of the Escrow Fund only as set forth herein. The Escrowed Securities and other assets of the Escrow Fund shall always be maintained by the Refunding Trustee as trust funds for the benefit of the owners of the Refunded Bonds; and a special account thereof shall at all times be maintained on the books of the Refunding Trustee. The owners of the Refunded Bonds shall be entitled to a preferred claim and first lien upon the Escrowed Securities, the proceeds thereof, and all other assets of the Escrow Fund. The amounts received by the Refunding Trustee under this Agreement shall not be considered as a banking deposit by the City, and the Refunding Trustee shall have no right to title with respect thereto except as Refunding Trustee under the terms of this Agreement. The amounts received by the Refunding Trustee under this Agreement shall not be subject to warrants, drafts or checks drawn by the City or, except to the extent expressly herein provided, by the Paying Agent. Article 4. Limitation on Investments Section 4.1. Investments. Except for the initial investment in the Escrowed Securities, and as provided in Section 8.3 hereof, the Refunding Trustee shall not have any power or duty to invest or reinvest any money held hereunder, or to make substitutions of the Escrowed Securities, or to sell, transfer, or otherwise dispose of the Escrowed Securities. Article 5. Application of Cash Balances Section 5.1. In General. Except as provided in Section 2.1, 3.2 and 8.3 hereof, no withdrawals, transfers or reinvestment shall be made of cash balances in the Escrow Fund. Cash balances shall be held by the Refunding Trustee in United States currency as cash balances as shown on the books and records of the Refunding Trustee and, except as provided herein, shall not be reinvested by the Refunding Trustee; provided, however, a conversion to currency shall not be required (i) for so long as the Refunding Trustee's internal rate of return does not exceed 20%, or (ii) if the Refunding Trustee's internal rate of return exceeds 20%, the Refunding Trustee receives a letter of instructions, accompanied by the opinion of nationally recognized bond counsel, approving the assumed reinvestment of such proceeds at such higher yield. A-4 P\20287 CMVV\20287 AMT 10/14/14