2016-105 Council Resolution - Laserfiche WebLink

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2. Restrictions on Withdrawal of Funds from Escrow Account. Regardless of any provision to the contrary within the Public Improvement Surety Agreement, no Funds shall be released from the Escrow Account to the Escrow Agent for disbursement unless the same is approved by both the City and the Bank. 3. Paragraph 3 of the Surety Agreement shall be revised to provide that all items identified under said paragraph 3 shall be furnished to the City and to the Bank and must be approved by both the City and the Bank prior to any further distribution of any Escrow Funds by Escrow Agent. Paragraph 3 shall be further revised by adding the following: "If requested by Bank or Escrow Agent, Borrower shall also furnish to Bank and Escrow Agent a copy of each contract with each of the Contractors. Borrower shall keep the Escrow Agent and Bank advised at all times of the names of all Contractors, and of the type of work, material or services and of the dollar amount covered by each of their respective contracts with Borrower. It is understood that only Contractors whose names, contract descriptions and, after a request therefor, contracts have been furnished to Bank and Escrow Agent shall be entitled to receive disbursements under this Agreement. Borrower may obtain advances for disbursement to contractors only to the extent of the amount currently due to each Contractor for work satisfactorily completed or materials actually incorporated into the Project by such Contractor, less any retainage permitted to be withheld pursuant to such Contractor's contract, and Borrower agrees that all sums requested hereunder for disbursement to each Contractor shall not exceed that amount. Escrow Agent shall not be required to make the final advance for the payment of the full amount of each Contractor's contract until the Bank and City are satisfied that all of the work covered by such contract has been completed in accordance with the approved Plans, and all requirements set forth in the Loan Agreement and Development Agreement have been fully complied with, including, with respect to the General Contractor, the requirements to evidence Completion of the Improvements. The Escrow Agent shall perform a search of the appropriate records and, within five (5) Business Days after receiving the foregoing items, shall give Bank notice by telephone if any intervening liens are disclosed (other than those expressly listed in the Title Policy or subsequent amendments thereto previously given to Bank). If any such intervening liens or other matters, which in Bank's and City's judgment jeopardize its security interest in the Project, are disclosed, the Escrow Agent shall refrain from making further disbursements until Bank and the City notify the Escrow Agent that such intervening liens or other matters have been waived by Bank and City or satisfied. Upon demand of Bank and/or City, Borrower shall immediately cause any such liens or other matters to be satisfied of record or bonded, or shall make other arrangements with respect to the discharge thereof satisfactory to Bank and City." 2