Res 2017-083/approving a principal forgiveness agreement with the Texas Water Development Board that forgives an amount not to exceed $685,839 out of $5,445,839 in principal funds to the city from the Clean Water State Revolving Fund to finance the const

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THIS ESCROW AGREEMENT (Agreement), made by and between the City of San Marcos (the "City"), a political subdivision of the State of Texas in the county of Hays (the "County"), acting by and through Regions Bank, as Escrow Agent together with any successor in such capacity; WITNESSETH: WHEREAS, pursuant to an Ordinance finally adopted on May 2, 2017 (the "Ordinance"), the City authorized the issuance of $4,760,000 City of San Marcos, Texas Waterworks and Waste Water System Revenue Bonds, Series 2017A (the "Bonds") and a Principal Forgiveness Agreement, the City will accept certain contractual obligations (collectively, the "Obligations") to obtain financial assistance from the Texas Water Development Board ("TWDB") for the purpose of funding water or wastewater system improvements (the "Project"); and WHEREAS, the Escrow Agent is a state or national bank designated by the Texas Comptroller as a state depository institution in accordance with Texas Government Code, Chapter 404, Subchapter C, or is a designated custodian of collateral in accordance with Texas Government Code, Chapter 404, Subchapter D and is otherwise qualified and empowered to enter into this Agreement, and hereby acknowledges its acceptance of the terms and provisions hereof, and WHEREAS, a condition of the Obligations is the deposit of the proceeds of the Obligations (Proceeds) in escrow subject to being withdrawn only with the approval of the Executive Administrator or another designated representative; provided, however, the Proceeds can be transferred to different investments so long as all parties hereto consent to such transfer; NOW, THEREFORE, in consideration of the mutual agreements herein contained and in consideration of the amount of fees to be paid by the City to the Escrow Agent, as set forth on EXHIBIT A, the receipt of which is hereby acknowledged, and in order to secure the delivery of the Obligations, the parties hereto mutually undertake, promise and agree for themselves, their respective representatives and successors, as follows: SECTION 1.: ESCROW ACCOUNT(S). Upon the delivery of the Obligations described above, the Proceeds identified under TWDB Commitment Number(s) L1000600 shall be deposited to the credit of a special escrow account(s) or escrow subaccount(s) (Escrow Account(s)) maintained at the Escrow Agent on behalf of the City and the TWDB and shall not be commingled with any other accounts or with any other proceeds or funds. The Proceeds received by the Escrow Agent under this Agreement shall not be considered as a banking deposit by the City, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The Escrow Account(s) shall be entitled "City of San Marcos, Texas Waterworks and Wastewater System Revenue Bonds, Series 2017A and a Principal Forgiveness Agreement, Texas San Marcos (TWDB) 2017A Escrow Agreement TWDB Commitment No. L1000600 Exhibit G, Page 2 of 6