O-1985-1448 - Laserfiche WebLink

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e . as set forth herein. Except as specified in Section 3.02 hereof, the Escrowed Securities and other assets of the Escrow Fund always shall be maintained by the Escrow Agent for the benefit of the owners and/or holders of the Defeased Bonds; and a special account thereof evidencing such fact shall be maintained at all times on the books of the Escrow Agent. The owners and/or holders of the Defeased Bonds shall be entitled to the same preferred claim and first lien upon the Escrowed Securities, the proceeds thereof and all other assets of the Escrow Fund as are enjoyed by other beneficiaries of similar accounts. The amounts received by the Escrow Agent under this Escrow Agreement shall not be considered as a banking deposit by the City, and the Escrow Agent shall have no right or title with respect thereto except as escrow agent under the terms hereof. The amount received by the Escrow Agent hereunder shall not be subject to warrants, drafts or checks drawn by the City. Section 2.05. Security for Cash Balances. Cash balances from time to time on deposit in the Escrow Fund, to the extent not insured by the Federal Deposit Insurance Corporation or its successor, shall be continuously secured by a pledge of direct obligations of, or obligations uncon- ditionally guaranteed by, the United States of America, having a market value at least equal to such cash balances. Section 3.01. Limitations on Investments. Except as herein o~herwise expressly provided, the Escrow Agent shall not have any power or duty to invest any money held hereun- der; or to make substitutions of the Escrowed Securities; or to sell, transfer or otherwise dispose of the Escrowed Securities. In particular, except as provided in Section 3.02 hereof, cash balances on deposit in the Escrow Fund shall not be reinvested or bear interest, and the Escrow Agent shall be entitled to retain any benefit from the deposit of such uninvested funds as additional compensation for its services hereunder. Section 3.02. Substitution of Securities. At the written request of the City, and upon compliance with the condition hereinafter stated, the Escrow Agent shall sell, transfer, otherwise dispose of or request the redemption of all or any portion of the Escrowed Securities and apply the proceeds therefrom to purchase Defeased Bonds or direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America and which do not permit the redemption thereof at the option of the obligor. Any such transaction may be effected by the Escrow Agent only if the Escrow Agent 001RDRBR/193BOl -4-