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1 <br /> DOCUMENT 00 61 25—RETAINAGE ESCROW AGREEMENT <br /> Project WPCF FEN Chlorination Building Upgrade (WO 3614) <br /> Contractor <br /> urrOr <br /> Ilisia? <br /> Bank <br /> 1. Escrow Agreement. The Contractor on a public improvement project for the City exercised its option pursuant to <br /> RCW 60.28.011 (1994)to place Retainage in escrow with the Bank. This Agreement constitutes both the escrow <br /> agreement between the City and Contractor and instructions to the Bank for handling of the Escrow Account. This <br /> Agreement is not effective until(a)the Agreement has been signed by the Contractor,Bank and City and(b) <br /> Contractor, Bank and City have entered the appropriate information in Exhibit A. <br /> Ir 2. Check Issuance,Endorsement,and Deposit. From time to time,the City will issue a Check payable to the Bank <br /> ■ and Contractor jointly. Contractor expressly authorizes and grants the power to the Bank to endorse the check on its <br /> behalf,to negotiate the check, collect the funds represented by the Check,and to deposit the funds so collected into <br /> the Escrow Account. These powers shall be deemed to be powers coupled with an interest and shall be irrevocable <br /> during the term of this escrow. <br /> 3. Investment of Funds. Funds and cash balances in the Escrow Account may be invested in Eligible Securities at <br /> the direction of the Contractor. For purchase of Eligible Securities,the Bank may follow the last written direction it <br /> received from the Contractor,provided such direction provides for investment in Eligible Securities. The Bank shall <br /> not invest any funds,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 be held by the Bank <br /> as custodian as part of this escrow. Eligible Securities shall be held in the Bank's name. Interest on the purchased <br /> Eligible Securities, if any, shall be paid to Contractor when, as and if any accrued interest is received by the Bank. <br /> 4. Eligible Securities. The following securities are deemed Eligible Securities,and the Bank may invest funds and <br /> cash balances in such securities at the direction of Contractor without further approval of the City,provided that any <br /> maturity dates are no later than 25 calendar days after the Completion Date and provided they are held in a manner <br /> and form that 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; <br /> E. Time deposits in commercial banks;and <br /> F. Mutual funds,pools, or investment trusts,provided the investments of the fund,pool or trust <br /> consists solely of securities listed in herein. <br /> Other securities may be deemed Eligible Securities upon written the written request of the Contractor and written <br /> approval of the City,provided the City has the staff assistance and expertise which will permit it to exercise sound <br /> judgment in assessing the security. The City shall consider probable safety,risk to principal, liquidity and any other <br /> factor the City deems reasonable to consider. Nothing herein obligates the City to incur any expense or charge to <br /> assess the appropriateness of a proposed security. The City has no obligation to consider a proposed security if the <br /> City would incur expenses, charges or fees in its assessment of the appropriateness of the security as an investment. <br /> If the proposed security has a maturity date,the security must mature on or before the Completion Date. The <br /> Contractor expressly acknowledges that any investment in securities involves risks, including,but not limited to,the <br /> ' risks of loss or diminution of principal and failure to realize anticipated or expected appreciation, dividends, interest, <br /> or other gain. Contractor expressly waives and releases both City and Bank from any and all liability associated <br /> with,or arising out of,these and all market risks. <br /> I <br /> I <br /> 10023829 City of Everett Public Works July 2018 <br /> WPCF FEN Chlorination Building Upgrade Work Order 3614 <br /> RETAINAGE ESCROW AGREEMENT <br /> 1 00 61 25-1 Issue for Bid <br />