Ord 1999-003 - Laserfiche WebLink

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WHEREAS, the issuance, sale, and delivery of the City of San Marcos, Texas General Obligation Refunding and Improvement Bonds, Series 1999 (the "Bonds"), have been duly authorized for the purpose, among others, of obtaining the funds required to provide for the payment of the principal ofthe Refunded Bonds at their respective maturity or redemption dates and the interest thereon to such maturity or redemption dates; WHEREAS, the Issuer desires that, concurrently with the delivery of the Bonds to the purchaser(s) thereof, a portion of the proceeds ofthe Bonds shall be applied to purchase certain "Federal Securities" (as herein defined), for deposit to the credit of the Escrow Fund created pursuant to the terms ofthis Agreement and to establish a beginning cash balance (if needed) in such Escrow Fund; WHEREAS, the Federal Securities shall mature and the interest thereon shall be payable at such times and in such amounts as will provide moneys which, together with cash balances from time to time on deposit in the Escrow Fund, will be sufficient to pay the interest on the Refunded Bonds as it accrues and becomes payable and the principal ofthe Refunded Bonds on their maturity dates or redemption dates; WHEREAS, to facilitate the receipt and transfer of proceeds of the Federal Securities, the Issuer desires to establish the Escrow Fund at the designated office of the Escrow Agent; and WHEREAS, the Escrow Agent is a party to this Agreement and hereby acknowledges its acceptance of the terms and provisions hereof; NOW, THEREFORE, in consideration of the mutual undertakings, promises and agreements herein contained, the sufficiency of which hereby is acknowledged, and to secure the full and timely payment of principal of and the interest on the Refunded Bonds, the Issuer and the Escrow Agent mutually undertake, promise, and agree for themselves and their respective representatives and successors, as follows: ARTICLE I DEFINITIONS AND INTERPRETATIONS Section 1.01. Definitions. Unless the context clearly indicates otherwise, the following terms shall have the meanings assigned to them below when they are used in this Agreement: "Beginning Cash Balance" means the funds described in Exhibit C attached hereto and incorporated herein by reference. "Code" means the Internal Revenue Code of 1986, as amended, including applicable regulations, published rulings and court decisions thereunder. "Escrow Fund" means the fund created in Section 3.01 of this Agreement to be administered by the Escrow Agent pursuant to the provisions of this Agreement. "Federal Securities" means the direct, noncallable obligations of the United States of America, including noncallable, nonprepayable obligations of which the full and timely payment of the principal of and interest are unconditionally guaranteed by the United States of America, that mature and/or bear interest payable at such times and in such amounts sufficient without reinvestment to provide for the scheduled R\SA)"MAR\GORl. 99\DOCS\ESCROW WPD 2