HomeMy WebLinkAbout12 - Attachment 6 - Draft Escrow AgreementDRA FT
E S C R O W A G R EE M E N T
R E L A T ING T O T HE DE FE A S AN C E O F
A PO R T I O N O F
$26 ,5 70,0 0 0
T R UC K EE D O NN E R P UB L IC UT IL I T Y D IS T R ICT
R efu n ding R ev e nu e C er tifica tes o f Pa rt icipa t ion
(Water Sys tem Improvement P rojects ),
S er ies 2 0 06
T H IS E S C R O W AG R E E M E N T, da ted a s of ___________ 1 , 2 01 5, b y a nd bet w een th e T r u c ke e
D on n er P u blic Ut ility D istr ic t (th e “D istr ict”), a nd T h e Ba nk of N ew Y or k M ello n T r u st C omp a ny, N .A.,
a ct ing i n its ca pa c it y a s esc row a g e nt (th e “E sc ro w A gent ”) p ur sua nt to this E scr ow A gr e em e nt (th e
“Agr eem ent ”);
W I T N E S S E T H :
W H ER EAS , the D istr ict has pr eviously ca u sed the iss uance of $26,57 0,0 00 Tr uckee D onn er Pu b lic
Utility D is tr ict R efunding R evenu e C er t ificates of Participa tion (Water S ystem I mp r ovem ent P r ojec ts ), S er ies
2 00 6 (the “Pr ior C ertifica tes ”) purs ua nt to a T rus t Agr ee ment dated a s of S ep tember 1, 2006 (t he “20 06 T r ust
Agr e em e nt”), by a nd a mong the D is tr ict, the T ru ckee D onn er Pu blic Utility D istr ict F ina ncing C or p ora tion
a nd T he Ba nk of New Yor k T ru st C ompa ny, N.A.; and
W H ER E AS , t he D is tr ict d et er mi n ed tha t it is in t h e D istr ict’s b es t int er est to a dva nc e r efu n d
p or tions o f th e ou ts t a nd i ng P r ior C er tifica tes a s mor e pa rtic ula r ly d escrib ed on S ch e du le C h er et o (s o
r efu n ded, the “R ef u nded C er t if ica t es ”);
W H ER E AS , p u rs ua nt t o a n Ind entu r e of T r ust, da ted a s of _____________ 1 , 2 01 5, by a nd b et w een
th e D is tr ic t a nd T he B a nk of N ew Yor k M ello n T r us t C omp a n y, N .A., a s tr u s tee (th e “T r ust ee”), the D istr ic t
ha s a u thor iz ed th e issu a nc e of $_______________ of its Wa ter S ys tem R efu ndi ng R ev e nu e B on ds, S er ie s
2 0 15 (the “B o n ds”), th e net p r oc e eds of w h ic h, tog et her w ith c er ta in uns p ent proc e eds of t h e P r ior
C er tif ica tes, sha l l p r ov id e fu n ds to a c co mp lis h s uch a r efu nd in g; a nd
W H ER E AS , the D ist r ict ex p e cts the B on ds to b e iss u ed on ____________, 20 1 5 ; a nd
W H ER E AS , th e pr oc ee ds of th e s a le of t h e B o nds sha l l b e a p p lied to th e r efu n din g of t h e R efu nd ed
C er tif ica tes i n a cc or da nc e wit h th e t er ms of th is A gr e em e nt ; a nd
N O W , T H E R EF O R E , in co ns i d er a tio n of t h e mu tu a l c ove na nts a nd a gr eemen ts her ein c o nta i n ed,
th e D is tr ict a n d th e E s c r ow A gent a gr ee a s fol lows:
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S E C T I O N 1. D epos it of M one ys.
(a) As used herein, the term “Investment Securities” means the Investment Securities set
forth in Schedule A hereto. The D is trict hereby depos its with the Escrow Ag ent $_____________, w hich
amount repres ents net proceeds of the Bond s and certain unspent proceeds of the Refunded C ertificates,
to be held in irrevocable escrow by the Escrow Agent separate and apart from other funds of the D istrict
and the Escrow Agent in a fund hereby created and es tablished and to be know n as the “Truckee D onner
Public U tility D is trict Water S yste m Re fu nd ing R e venue B onds, Ser ies 2015 Escrow Fund” (referr ed
to herein as the “Es crow Fund”), to be applied sole ly as provided in t his Agreement. Such mone ys are
at least equal to an amount sufficie nt to purchase the princ ipal amount of In vestment Securities s et forth
in Schedule A hereto.
(b) T he E scr ow Agent her eb y a cknow ledges receip t of the cash flow a nd yield verific a t ion r eport
of C au s ey D emg en & M oor e P.C ., certified p u blic a cc ou nta nts, da ted _______________, 2 01 5 (the
“Ver ifica tion R ep ort”), a nd the opinion of S tra dling Yo cca C a r lson & R au th, a Pr ofessiona l C or p oration,
da ted _____________, 20 15, r elating to t he su fficienc y of the cash deposited p urs uant her eto t o defea s e the
R efunde d C ertifica tes a nd, as t o su ch op inion, r elating to this Agr eement.
S E C T I O N 2. Use a nd Investm ent of M oneys. T he Escr ow Agent a ckno w le dg es r eceip t of the
mon eys des c r ib ed in S ect ion 1(a ) a nd a gr ees:
(a) to imm edia tely to inves t $__________ of the moneys descr ib ed in S ection 1(a)(i)
her e of in the I nvestment S ec ur ities s et for th in Sc hedu le A her eto a nd to dep osit su ch Investm ent S ecu r ities
in the E scr ow Fund a nd to hold $_____________ u ninv est ed a s ca s h; a nd
(b) to ma ke the pa ym ents r equ ired under S ection 3 (a ) her eof a t the t im es s et forth in
S ec tion 3 (a ) her eof.
S E C T I O N 3. Pa ym ent of R ef unde d C ert ifica tes.
(a) Payment of the Refunded Certificates. As the principa l of the In ves tment
Securities s et forth in Schedule A hereof and the investment income and earnings thereon are paid, the
E scrow Agent s hall transfer from the Escrow Fund to p ay (i) w hen due, interest w ith r espect to the
Refunded Certificates through the scheduled prepayment date of N ovember 15, 2016, and (ii) pay the
prepayment price of the Refunded Cer tificates on N ov emb er 1 5, 2 01 6, at a prepayment price equal to
100% of the principal amount thereof.
S uch tra nsf er s sha ll const itute the r esp ective pa yments of the pr incipa l of a nd inter est with r es p ect t o
the R efunded C ertifica tes a nd pr ep a yme nt pr ice du e fr om the D istr ict.
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(b) U nclaimed M one ys. Any m one ys w hich remain unclaimed for tw o years after
the date such moneys have become due and payable hereunder s hall b e repaid by the Escrow Agent to
the D istrict (w ithout liability for interest) and dep osited by the D istrict in the D ebt Service Fund relating
to the Bonds. Any mone ys rem aining in the E scrow Fund established hereunder after N ove mb er 15, 20 16
(aside from unclaimed monies of the R efunded Certificates) which are in excess of the amou nt needed
to pay owners of the Refunded Certificates payments of princ ipal a nd interest and prepayment premium,
if any, w ith respect to the R efunded Certificates or to pay any amounts ow ed to the Escrow Agent s hall
be im mediately transferred by the Escrow Agent to the District and deposited by the D is trict in the Debt
Service Fund relating to the Bonds.
(c) Pr ior ity of P a ym ents . T he hold er s of the R efunded C ertifica tes sha ll ha ve a n equa l
a nd first lien on the mon eys a nd s ecur it ies in the E scr ow F und whic h ar e a llowa b le a nd su fficient t o pa y t he
R ef unde d C ertificat es u ntil su c h mon eys ar e u s ed a nd app lied as pr ovided in this Agr eem e nt, as ver ified b y
the Ver ifica tion R ep or t. Any ca s h or sec ur ities held in the E scr ow Fu nd ar e irrevoca bly pledg ed on ly to t he
hold er s of t he R efund ed C ert ific ates.
(d) T er mina tion of Ob liga t ion Up on dep osit of the mo ney s set forth in Section 1 (a )
her e of with t he E scr ow Agent p urs uant to the p r ovis ions of S ec tion 1(a ) her eof a nd the simu lta neou s p ur chase
of the Inves tm ent S ec ur ities as pr ovided in S ec tion 2 her eof, a ll obliga tions of t he D istr ict with r esp ect to the
R ef unde d C er tificat es s ha ll ceas e a nd ter mina te, ex c ep t only the ob liga tion to ma ke pa ym ents therefor fr om
the mon eys provided for her eu nder .
SEC TIO N 4. Performance of Duties. The Escrow Agent agrees to perform the duties s et forth
herein.
S E C T I O N 5. R einv es tment . Up on wr itten dir ection of the D istr ict, the E scr ow Age nt ma y r einv es t
a ny uninvest ed a mounts held a s cash u nder this Agr eement in n onca lla b le nonp rep a ya b le ob liga tions which
a re direct ob liga tions issu ed b y the United S ta tes T r easur y or obliga tions which ar e u nconditio na lly
guara nt ee d as to full a nd tim ely pa ym ent by the United S ta tes of Amer ica pr ovided (i) the a mounts of a nd
da tes on whic h t he a ntic ipa ted tra nsfers fr om the Escr ow Fu nd to the T rust ee for t he pa yment of the pr incipa l
of, pr ep a yment pr ic e of, a nd inter est on the R efu nded C ertificates will not b e dimi nishe d or p ostponed ther eby,
(ii) the E s cr ow Agent s ha ll r eceiv e t he u nqua lified opinion of na tionally r ecogniz ed munic ipa l b ond cou ns el
to t he effect that su ch r einvestm ent will not a dver sely a f fect t he ex c lusion fr om gr oss inc o m e for fed era l
inc ome ta x pur p oses of int er est on the B onds or t he R efund ed C er tificates, (iii) the E scr ow A gent s ha ll r eceiv e
fr om a fir m of ind ep endent cer tified p ub lic accou nta nts a cert ific ation that, imm edia t ely after su ch
r einv estm ent, the pr incipa l of a nd inter es t on ob ligat ions in the Es cr ow F u nd will, toget h er with other ca s h on
dep os it in t he Escr ow F u nd a va ila b le for su ch p urposes, be su ffic ient withou t r einv estment to pa y, when du e,
the pr inc ipa l or pr ep a yment pr ic e of a nd inter es t on the R efund ed C ertifica tes; a nd (iv) the Escrow Ag ent sha ll
r eceiv e a n op inion of na tiona lly r ecogniz ed mu n icip a l b ond cou nsel that s uch r einv es tm ent is per missib le
u nder t his Agr eem ent a nd tha t the conditio ns u nder this S ection 5 ha ve b een sa tis fied.
S E C T I O N 6. Indemn ity. T he D istr ic t her eb y assumes lia b ility f or , a nd her eb y a gr ees (whet h er or
not a ny of the tra nsactions contempla ted her eb y are consu m ma t ed) t o ind emnif y, pr ot ect, sa ve and ke ep
har ml es s the Escr ow Agent a nd its r esp ect ive s ucc essors, ass igns, a gents, employ ees a nd s er va nts, fr om a nd
a ga inst a ny a nd a ll lia b ilities , ob ligations , losses, da mages , p enalt ies, cla ims, a c tions, suits, costs, ex p enses
a nd disb ursement s (inc lu din g r eas ona b le lega l fees a nd dis b ursements) of whatsoever kind a nd na tur e whic h
ma y b e impos ed on, incur red b y, or a sserted a ga inst, the E scr ow Age nt at a ny t ime (wheth er or not a lso
inde mnified a ga inst the sa me by the D istrict or a ny other p er son u nder a ny other a greem ent or ins trume nt, b ut
withou t dou ble ind em nity) in a ny wa y r ela ting t o or a rising ou t of the ex ecu tion, deliv er y a nd p er for ma nce of
its Agr eement, the establis hm ent her eu nder of the Escrow F u nd, the a cc ep ta nce of the fu nds a nd s ec ur it ies
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dep os ite d ther ein, a nd a ny pa yment, tra nsfer or other app lic ation of mo neys or secur it ies b y the Es cr ow Agent
in a cc or da nce wit h t he pr ovisio ns of t his Agr eem ent; pr ovid ed, how ev er , tha t the D istr ict s ha ll not b e r equ ir ed
to indem nif y the E scr ow Agent a ga inst t he E scr ow Agent’s own negl igenc e or willful m is condu ct or the
neglig ent or willfu l mis c on du ct of the E scr ow Ag ent’s res p ective s u cc ess ors, assigns, a gents a nd emplo ye es
or t he br ea ch by the E scr ow Agent of t he ter ms of this Agr eem ent. In no eve nt s ha ll the D istr ict or t he E scr ow
Ag ent b e liable to a ny p erson b y r ea son of the tra nsa ctions cont empla ted her eb y ot her t ha n to ea c h other a s
set for th in t his section. T he inde mnities conta ined in t his sect ion s ha ll s ur vive t he ter mina tion of t his
Agr e em e nt a nd the earlier r emo va l or r esigna tion of t he E s cr ow Agent .
S E C T I O N 7. R esp onsib ilities of the E scr ow Agent . T he Es cr ow Agent a nd its resp ec tive
su ccess ors, ass igns , a gent s a nd ser va nts s ha ll not be held to a ny p er sona l liability wha ts oev er , in tor t, contra ct
or other wise, in conn ec tio n wit h t he exec u tion a nd de livery of this Agr eement , t he es ta blishme nt of t he Escr ow
F u nd, the a cc epta nce of the mon eys or s ec urit ies dep osited ther ein, the su fficiency of fu nds dep os ited with
the E scr ow Ag ent to a c complish the r ef undin g a nd defeasa nce of t he R efu nded C ertif icates or a ny pa yment,
tra ns fer or other a pp lication of m on eys or obliga t ions b y t he E scr ow Ag ent in a ccor da nce with the p r ovis ions
of this Agr eement or by r eas on of any non-neg lig ent a ct, non-n eg lig ent omission or non-neglig e nt error of the
E s cr ow Agent made in goo d fa ith in the conduct of its du ties. T he r ecita ls of fa ct c onta ined in the “wher ea s”
c la uses her ein sha ll b e ta ken a s the statem ents of the Distr ict a nd the E s cr ow Agent a s su mes no r es p ons ib ility
for t he correct ness ther eof. T he Escr ow Ag ent ma k es no r epr esenta tion as to the s ufficiency of funds
dep os ite d p ursua nt t o S ec tion 1 her eof to a ccomp lis h t he r ef u nding a nd defea sa nc e of the R efu nded
C er tificates or to t he va lidity of this Agr eem ent a s to t he D is tr ict a nd, ex cept a s other wis e pr ovid e d her ein,
the E s cr ow Ag ent s ha ll incur no liab ility with r es p ect t her et o. T he Escr ow Ag ent sha ll not b e lia ble in
c onnec tion with the p erfor ma nce of its duties u nder this Agr ee me nt excep t for its own n eglig enc e, willfu l
mis condu ct or defau lt, and the duties a nd ob liga t ions of the E s cr ow Ag ent sha ll b e deter min ed by the ex pr es s
pr ovisions of t his A gr eem ent. T he Escr ow A gent ma y cons u lt with cou ns el, who ma y or ma y not be c ou ns el
to the D istr ic t, a nd in r elia nc e up on the wr it ten op inion of s uc h c ou nsel s ha ll ha ve full a nd c omp let e
a uthor izat ion a nd prot ec tion with r espec t to a ny a ct ion ta ken, suffer ed or omit ted by it in good fait h in
a ccor da nce t her ew ith. W hene ver the E scr ow Agent s ha ll deem it nec es sar y or desira ble that a matter b e
pr oved or esta blished pr ior to ta king, suffer ing, or omitting a ny a ction u nder this Agr eeme nt , su ch matt er ma y
b e de em ed to be conclu s ively esta b lis hed by a c er tifica te sign ed b y an a uthor iz ed offic er of the Distr ict.
T he E scr ow Ag ent sha ll b e pr otect ed in a c ting a nd r elying u pon a ny notic e, or der, r equ isition, r eques t,
c ons e nt, c ert ificate, or der , op inion (including a n opinio n of indep en dent cou ns el), affida vit, letter, telegr a m
or other pa p er or docum ent in good f a it h dee med b y it to b e genuin e a nd c orr ect a nd to ha ve bee n signe d or
sent b y the pr op er p ers on or p ersons . T he E s cr ow Agent sha ll not b e r equ ir ed t o r is k, us e or a dva nce its own
funds or other wise inc ur fina nc ia l liab ility in t he p er f or ma nce of a ny of its du ties or t he ex er cis e of a ny of its
r ights a nd power s her eu nder . T he Es crow Ag ent ma y ex ecut e a ny of the tr usts or p ower s her eu nd er or per for m
a ny dut ies her eu nd er either dir ectly or b y or thr ou gh a gents, att orneys, cust odia ns or nom inees ap point ed with
due car e, a nd s ha ll not b e r esp onsib le for a ny willfu l m isc ondu c t or negligenc e on the pa rt of a ny a gent,
a tt or ney, custodia n or no minee s o a pp ointed. Anything in this Agr eem ent to t he c ontrar y notwithsta nding, in
no event sha ll the E s cr ow Agent be lia ble for specia l, indirect, p unitive or consequ ent ial loss or da ma ge of
a ny kind wha ts oev er (inclu ding b ut not limited to lost profits), even if the E s cr ow Agent has been a dvised of
the lik elihoo d of such loss or da ma ge a nd r ega r dles s of the f or m of a ction. T he Es cr ow Agent s ha ll not be
lia b le to the p arties her eto or dee med in br ea c h or defa u lt her eunder if a nd to the extent its per for ma nce
her eu nd er is pr evente d by r ea s on of for c e ma jeur e. T he term “for ce ma jeu re” m ea ns a n occurr ence t hat is
b eyond the c ontr ol of the E scr ow Age nt and could not ha ve b een a voided by ex er cis ing du e ca r e. F orce
ma jeu r e sha ll inc lude a cts of G od, terr or is m, wa r, r iots, str ikes, fir e, floods, ea rthqu a kes, ep idemics or other
similar occ urr ences .
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T he Escrow Agent a gr ees to a cc ep t a nd a ct up on ins tru ctions or dir ections purs ua nt to this Agr eem ent
sent by u nsecur ed e-ma il, fa cs imi le tra ns mis sion or other s imila r u nsecur ed electr onic meth ods , pr ovided,
how ever , th at, t he E scr ow Agent sha ll ha ve r eceived a n inc u mb enc y c er t ificat e lis ting p er s ons des igna ted to
give s u ch instru ctions or dir ections a nd conta ining sp ecime n s igna tur es of su ch desig na ted p er sons, which
su ch incumb enc y cert ificate sha ll be a men d ed a nd r ep la ced wh e nev er a p er s on is to b e a dded or delet ed from
the lis ting. If t he D istr ict elect s to give the E s cr ow Ag ent e-ma il or fa csimile instru ctions (or instr u ctions b y
a simila r elect ronic metho d) a nd the E s cr ow Agent in its discr etion elect s to act up on su ch instr u ct ions, the
E s cr ow Agent’s u nder sta nding of s u ch instr u ct ions sha ll be dee med contr olling. T he E s cr ow Ag ent s ha ll not
b e liable for a ny losses , c os ts or ex p ens es ar ising dir ectly or indir ect ly fr om the Escr ow Agent’s r elia nce up on
a nd comp lia nce wit h su ch instr u ct ions not withs ta nding su ch instructions c onflict or ar e incons is tent with a
subsequ ent wr itt en instru ction. T he D istr ict a grees to a ssu me a ll r isks ar ising out of t he use of su ch elec tr onic
metho ds to su b mit ins tructions a nd dir ect ions to the E scr ow Agent, inclu din g w ithou t limita tion the r isk of
the Escr ow Agent a ct ing on una uthor ized ins tru ctions, a nd t he r is k of inter cep tion a nd mis use by thir d parties .
S E C T I O N 8. S ubs titut ion of Inves tment S ec ur ities. At t he wr itten r equ est of the D istr ict a nd up on
c omp lia nce with the conditions her eina fter s et fort h, the E s cr ow Agent s ha ll ha ve the power to sell, transfer,
r equ es t the pr epa yment or other w ise disp os e of s om e or a ll of t he Inves tm ent S ec ur ities in the E scr ow Fund
a nd to su bst itute nonca lla b le nonp r epa ya b le obligations (the “Substitute Inves tment S ec ur ities”) const ituting
dir ect ob ligations issu ed b y the Unite d Sta t es T r ea sur y or ob liga tions which ar e u nconditiona lly gu ara nt eed
a s to full a nd t im ely pa ym e nt b y the Unit ed States of Am er ic a. T he for egoi ng ma y be ef fected only if: (i) the
substitu tion of Su bstitut e Investm ent S ec ur ities for the Invest ment S ec ur ities (or S ubstitu te Inves tm ent
S ec ur ities) occ urs simu lta neou sly; (ii) the a mounts of and da tes on which the a ntic ipa ted tra nsf ers fr om the
E s cr ow F u nd to the T rustee for the pa yment of the pr inc ipa l of a nd/or pr epa ym ent pr ice of a nd/or inter est with
r esp ect t o t he R efunde d C ertificates will not b e diminis h ed or p ostpone d t her eb y; (iii) t he E scr ow Age nt s ha ll
r eceiv e the u nqua lified opinion of na t iona lly r ec ogniz ed mu nicipa l b ond couns el to th e effec t t ha t such
dis position a nd s ub stitu tion would not a dver sely a ffect the ex clusion from gr oss incom e for feder a l incom e
ta x pur p oses of interest wit h r esp ect to t he R ef unde d C ertif ica t es or the R efu nding C ert ifica tes, a nd that the
c onditions of this S ec tion 8 a s to the disp osit ion a nd subs titut ion ha ve b een sa tisfied a nd tha t the su bstitu tion
is p er mitt ed b y this Agr eem ent; a nd (iv) the Escr ow Agent s ha ll r eceiv e fr om a fir m of indep end ent cer t ified
p ub lic a c cou nta nts a cert ification tha t, imm edia tely after s u ch tr a nsaction, t he pr incipa l of a nd inter est on the
S ubs titut e Inves tment S ecur ities in the E scr ow F u nd will, toget her with other cash on dep osit in t he E s crow
F u nd a va ila b le for s u ch p urpos e, be suffic ient wit hout reinvestm ent to pa y, when due, t he pr epa yment pr ice
of a nd inter est with r esp ect to the R efu nded C ertificates. Any c a sh fr om the s a le of Inves tm ent S ec ur ities
(inc luding U.S. T r easur y S ecur it ies) r ec eived from the disp osition a nd subst itution of Su bst itute I nvestment
S ec ur ities pursua nt to t his S ection 8 to the ex tent suc h cash will not be r equir ed, in a c cor da nce with this
Agr e em e nt, a nd as demo ns trat ed in the certific ation described in (iv) a b ove, a t a ny time f or t he pa yment when
due of the p r epa ym ent pr ic e of or inter es t wit h r esp ec t to the R efu nd ed C ertificates sha ll b e pa id to the Distr ict
a s r eceiv e d by the E s cr ow Agent fr ee a nd c lear of any tru st, lien, p led ge or ass ign ment s ecur ing su ch
R ef undin g C ertificates or other wise existing u nder this Agr eem ent. Any other su bstitution of s ecur it ies in the
E s cr ow F u nd not des c r ib ed in the pr eviou s s entence m u st sa tis fy the r equir em ents of this S ec tion 8. In no
event sha ll the Escrow Age nt invest or r einv est mon eys held u nder this Agr eem ent in mu tua l funds or unit
inves tm e nt tr usts.
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S E C T I O N 9. Irr evoc ab le Instr u ctions a s t o N otice. T he Escr ow Ag ent:
(a) Agr e es tha t it sha ll pr ovid e tim e ly notic e of pr ep a yme nt of the R efu nd ed C er tificat es
p ursua nt to t he Irr evoc ab le Instr uctions a nd R equest to Escr ow Agent a tta c hed her eto as S chedule B ; a nd
(b) Acknowledges that upon the fund ing of the Es crow Fund as p rovided in
Section 1(a) hereof and the s imulta neou s pur c ha se of t he I nves tm e nt S ecur ities a s pr ovid ed in S ection 2
her e of, the receipt of the opinion and the V erificat ion Report described in S ection 1(b) of this Agreement,
then the Refunded C ertificates shall be deem ed paid in accordance w ith the terms of the Refunded
Certificates and all ob ligations of the District w ith respect to the Refunded Certificates shall cease and
terminate, except only the obligation to make payments therefore from the monies provided for
hereunder.
S E C T I O N 1 0. A men d ments. T his Agr eement is ma de f or the ben efit of the D is tr ict a nd t he ho ld er s
fr om time t o time of t he R efund e d C er tificates a nd it s ha ll not be r ep ea led, revoked, a lter ed or a mend ed
withou t t he wr itten consent of a ll s u ch hold er s, the E scr ow Agent a nd the D istrict; pr ovided, however , but
only a fter the receipt by the Escr ow A gent of a n opinion of na tiona lly r ecogniz ed mu n ic ipa l b ond c ounsel t hat
the exclu s ion fr om gr oss inc om e of int er est on t he Bonds a nd the R efunded C er tificates will not be a dver s ely
a ff ec ted for feder a l inco me ta x purpos es , tha t the D istr ict a nd the Escr ow Age nt ma y, wit hou t the consent of,
or notice to, su ch holder s , a men d this Agr eem ent or enter into such a gr eem e nts su pp lem enta l t o t his
Agr e em e nt a s sha ll not a dver s ely a ffec t the r ights of suc h hold er s a nd a s sha ll not b e inc onsis tent wit h the
ter ms a nd pr ovisions of t his Agr ee me nt for a ny one or mor e of the follow in g p urp oses: (i) to cur e any
a mb iguity or for ma l defect or omiss ion in this Agr eem ent; (ii) t o gra nt to, or conf er u p on, t he Escr ow Agent
for t he b enefit of the holder s of t he R efunded C er tifica tes a ny a dditiona l r ights, r emedi es, p ower s or a uthor ity
that ma y la wfu lly b e gra nted t o, or conferr ed up on, su ch hold er s or the E scr ow Ag ent; a nd (iii) to inclu d e
u nder this Agr eement a dditional fu nds , s ecur ities or pr op er ties. T he E scr ow Age nt s ha ll be entitled to r ely
c onclusiv ely u p on a n u nqua lifie d op inion of na tiona lly r ecogniz ed mu nicip a l b ond c ouns el with r esp ect to
c omp lia nce with this S ection 1 0, inclu ding the ex tent, if a ny, to whic h a ny c ha nge, modific a t ion, a ddition or
elimina t ion a ffects t he r ights of the holder s of the R efunde d C ertifica tes or t ha t a ny ins tru ment ex ecu t ed
her eu nd er compli es with the condit ions a nd pr ovisions of this S ect ion 1 0. In t he ev ent of a ny conflict with
r esp ect to the pr ovisions of this Agr eem e nt, this Agr ee ment sha ll pr eva il a nd b e b inding.
S E C T I O N 1 1. T er m. T his Agr eement sha ll comm enc e u p on its ex ecution a nd deliv er y a nd s ha ll
ter mina te on the later to occur of eit her (i) the date up on whic h the la st of the R efunde d C ertif icat es ha ve been
pa id in a ccor da nce with t his Agreem ent or (ii) t he da te up on which no u nc la imed mo n eys r ema in on deposit
with the E scr ow Agent pursua nt to S ec tion 3 (b ) of t his Agr eem ent.
S E C T I O N 1 2. C omp ensation. T he Es cr ow Agent s ha ll receive its r eas ona ble fees a nd exp ens es a s
pr eviou sly a gr eed to; provid ed, how ev er , that u nder no c ir c umsta nces s ha ll the Es cr ow Agent be ent itled to
a ny lien nor will it a ssert a lien wha tsoev er on a ny mon e ys or ob ligations in the E scr ow F und for the pa yment
of fees a nd ex pens es for s er vices r ender ed by the E s cr ow Ag ent u nder this Agr eement.
S E C T I O N 1 3. R esigna tion or R emova l of E s cr ow Agent .
(a) T he Escr ow Ag ent ma y r esign by givin g notice in wr iting to the D istr ict, a cop y of
whic h sha ll b e s ent to DT C . T he Escr ow Agent ma y b e remo v ed (1 ) by (i) filing w ith t he D istr ic t a n
ins tr u ment or instr u m ents ex ecuted b y the hold er s of a t lea st 51% in aggr ega te pr incipa l a mou nt of t he
R ef unde d C ertifica tes then r ema ini ng u np a id, (ii) s endin g notice at lea st 60 da ys pr ior to the effec tive da te of
sa id r em ova l to DTC , a nd (iii) the deliv er y of a cop y of the instru ments filed with the D istrict t o the Escr ow
Ag ent or (2 ) by a c ourt of comp etent jur isdict ion for fa ilu r e to act in a ccor da nce with the pr ovis ions of this
7
Agr e em e nt u pon ap p lication b y t he D istr ict or the holder s of 5 1 % in a ggr ega t e pr incip a l a mount of t he
R ef unde d C ertifica tes then r ema ini ng u np a id.
(b) If the pos ition of E scrow Agent becomes vacant due to resignation or removal of
the Escr ow Agent or any other reason, a success or Escrow Agent may be appointed by the D istrict. The
holders of a majorit y in princ ipal amount of the Refunded C ertificates then rem ain ing unpaid may, by an
ins trument or ins truments filed w ith the D istrict, appoint a successor Escrow Agent w ho shall s upersede
any Escrow Agent theretofore ap pointed by the D istrict. If no successor Escrow Agent is appointed by
the D istrict or the holders of such Refunded C ertificat es then remaining unpaid, w ithin 45 days after any
such res ignation or rem oval, the holder of any such Refunded Certificates or any retiring Escrow Agent
may apply t o a court of com petent jurisdiction for the ap pointment of a s uccess or Es crow Agent. The
respons ibilities of t he Escrow Agent under this E scrow Agreement w ill not be discharged until a new
E scrow Agent is appointed and until the cash and investments held under this Escrow Agreement are
transferred to the new Es crow Agent.
S E C T I O N 1 4. S ever a b ilit y. If a ny one or mor e of t he covena nts or a gr eem ents pr ovid ed in this
Agr e em e nt on the part of the D istrict or the Escr ow Age nt to b e per for me d s hou ld be determ in ed b y a court
of c ompetent jur isdiction to be contrar y to la w, s u ch c ovena nts or a gr eem ents sha ll b e nu ll a nd void a nd sha ll
b e deem ed s ep a rat e fr om the r ema inin g cove na nts a nd a gr eements her ein conta ined a nd sha ll in no w a y a ffect
the va lidity of the r e ma ining pr ovisions of this Agr eem e nt.
S E C T I O N 1 5. C ou nt erparts. T his Agreem ent ma y b e ex ecut ed in seve ra l c ou nterpa rts, a ll or a ny
of which sha ll b e r ega r ded for a ll pur p oses as one or igina l a nd sha ll constitute a nd b e but one a nd the sa me
ins tr u ment .
S E C T I O N 1 6. G ov er ning La w. T his Agr eem ent sha ll b e constr u ed u nder t he la ws of t he State of
Ca lifor nia.
S E C T I O N 1 7. H olida ys. If t he da te for ma king a ny pa yment or the las t da te for p er for ma nce of a ny
a ct or t he ex er c is ing of any r ight, as pr ovid ed in this Agr eem ent, sha ll be a lega l holida y or a da y on which
ba nking ins titutions in the cit y in which is located the pr incip a l office of t he E scr ow Agent ar e aut hor ized by
la w to r ema in c losed, suc h pa yment ma y b e ma de or a ct p erf or m ed or r ight exer c is ed on t he nex t su cceedin g
da y not a lega l holida y or a da y on which su ch ba nking ins titut ions a re a ut horized by la w to r ema in closed,
with t he sa me for c e a nd ef fect a s if done on the no mina l da te pr ovide d in this Agr eem ent, a nd no inter es t s ha ll
a ccru e for t he p er iod a fter su ch nominal da te.
S E C T I O N 1 8. Assign ment. T his Agr eement sha ll not b e as signed b y the E s cr ow Agent or a ny
su ccess or ther eto withou t the pr ior wr itten cons e nt of the D istr ict, exc ept tha t no su ch pr ior wr itten cons e nt
sha ll b e r equ ir ed for ass ign m ents pursua nt to S ection 2 0 her e of.
S E C T I O N 1 9. Rating Ag encies. T he D istr ict a gr ees t o pr ovide S ta ndar d & P oor ’s Ratings
S er vices, a Sta nda r d & P oor ’s Fina ncia l S er vic es L LC b usines s, 55 Wa ter Str eet, N ew Yor k, N ew Yor k
1 00 41 , a nd M oody’s Invest ors S er vic e, 7 W or ld T ra de C enter a t 2 50 Gr een wich Str eet, N ew Yor k, N ew Yor k,
1 00 07 , pr ior notice of eac h a men dm ent enter ed into p ur sua nt to S ect ion 1 0 her eof a nd a copy of su c h pr op osed
a mendm ent, a nd to for war d a c op y (as soon a s poss ib le) of (i) ea c h a mend m ent her et o enter ed int o p ur sua nt
to S ec tion 10 her eof, a nd (ii) a ny a ction r elating to sever ab ility or contemp la ted b y S ec tion 14 her eof.
S E C T I O N 2 0. R eor ga niza tion of Escr ow Ag ent. N otwithsta nding a nything to the contrar y
c onta ined in this Agreem ent, a ny comp a ny into which the E scr ow Agent ma y b e merged or c onver ted or wit h
whic h it ma y be consolida ted or a ny comp a ny r esu lting fr om any m er ger , c onver s ion or c ons olida tion t o
8
whic h the E scr ow A gent is a party, or a ny comp a ny to which the E scr ow Agent ma y s ell or tra nsfer a ll or
substa ntia lly a ll of it s cor p ora te tru st b us ines s sha ll be the succ ess or to t he E s cr ow Age nt withou t ex ecu tion
or filing of a ny paper or a ny pa per or fur ther a c t, if su ch co mp a ny is eligibl e to s er ve a s E scr ow A gent.
IN W IT NE S S W H E R E OF , the p a r ties h er et o ha ve ca u se d t his E s cr o w A gr ee ment to b e ex ecut ed
b y th eir dul y a uthor i z ed o ff ic er s a s of t he da y a nd y ea r firs t a bove wr itt e n.
T RU CK E E DO NN ER P U BLIC UTIL ITY D ISTR IC T
By :
Preside nt of the B oard of D irectors
ATTES T :
By :
Secretar y of the B oard of D irect ors
T H E BAN K O F N E W YO R K M E L LO N T R US T
C O M P A N Y, N .A., a s E scr ow Ag ent
By :
Authorized O fficer
A-1
S C H E D U L E A
“Invest ment S e cu r it ies ” a r e d ef in ed t o b e a nd s ha ll b e th e f ollo w in g:
B-1
S C H E D U LE B
IR R E VO C A BL E IN S T R UCT IO N S AN D R E Q UE S T T O
E S C R O W AG E N T
T he Ba nk of N e w Y or k M ello n T ru st C ompa ny, N .A . ___________, 2 01 5
$26 ,5 7 0,0 0 0
T R UC K EE D O NN E R P UB L IC UT IL I T Y D IS T R ICT
R efu n ding R ev e nu e C er tifica tes o f Pa rt icipa t ion
(Water Sys tem Improvement P rojects ),
S er ies 2 0 06
L a di es a nd G e ntle me n:
As E scro w A gent a nd T r us tee w ith r es p ec t to th e a b ov e -ca p tio ned c er tif ic a tes of p a r ticip a tio n (t he
“R efu n ded C er tifica tes”) a s fur ther d ef in e d in tha t certa in E scr o w A gr ee m ent , da te d a s of ___________,
2 0 15 , b etw ee n t h e T r u cke e D o nn er P u blic U tilit y D ist r ict (the “D is tr ic t”) a nd T h e Ba n k of N ew Y or k
M ello n T r u st C o mp a n y, N .A., as escr o w a g ent (th e “Esc row A gr ee m ent ”), you a r e her eb y n ot if ie d of t h e
ir r evo c a b le el ec tion of th e D ist rict to p a y th e int er es t on th e T r u cke e D o n ner P u b lic Ut ilit y D ist r ict
R ef undin g R evenu e C ert ificates of Participation (Water System Impr ove ment Pr oject s), S er ies 20 06 ma tu r in g
o n N o vem b er 1 5, 20 __ thr ou gh a nd i n clu d ing No v emb er 1 5 , 2 0 __, a nd t o r edeem o n A u gust 1 , 2 0 15 th e
outs ta nd in g pr incip a l ther eo f a t a pr ep a y ment p r ic e equ a l to 1 0 0% of th e p r inc ipa l a mou nt t her eof
(coll ectiv e ly, th e “R efu n ded C er tif ica t es ”).
Y ou a r e her eb y ir r ev oc a b ly ins tr u c ted t o g iv e, a s pr ov id ed i n t h e R eso lu tio n of th e D ist r ict p u r s u ant
to w h ic h t he R efu n d ed C er tif ica t es w er e is s u ed, a nd, a s p r ovid ed in the n oti c e of pr ep a ym en t o f su c h
p r inc ip a l a m ou nts of sa id R efu nd ed C er tifica t es a s are sc he du led to be r ed eemed p r ior to ma t ur ity to the
ext ent s uch R efu n ded C er tif ic a t es ha v e n ot b een ot her w is e r ed eem ed or p u r cha s ed b y th e E scr o w A g ent
p r ior to su ch da te. S u ch n otic e s ha ll b e in th e f or m ann ex ed h er et o a s E xhibit X . You a r e a lso her eb y
ir r evo c a b ly ins tr u c ted t o f ile notic es of def ea s a nc e of t h e R efu n d e d C er tif ic at es w it h t he M u n ic ipa l
S ec ur it ies R u le ma kin g B oa r d, w hic h ca n b e f ou n d a t http ://emm a .ms r b .or g/.
B-2
Y ou a r e her eb y fu r th er ir r ev oca bl y ins tr uct ed t o pr ov id e, a s s oon a s pra ctica ble, n otic e t o th e
h o lder s of th e R efu nd ed C er tif ica t es (in t h e for m a n n ex ed h er et o a s E xhib it Y) tha t th e d ep os it of mo n e ys
ha s b een ma de w ith you a s su c h E s cr ow A g ent a nd t ha t you ha v e r ec e iv ed a v er if ica tio n rep or t ver if yin g
tha t th e p r oje ct ed withdr a wa ls fr o m su c h es cr o w ha v e b e en ca lc u la t ed t o b e a d equ a t e t o pa y t h e pr inc ip a l
or pr ep a ym ent p r ic e of a n d th e int er est o n s a id R efu n d ed C er t ifica tes ou tst a n din g a s s u ch b ec o m e du e or
a r e su b ject to p r epa y m en t.
T R UC K E E D O N N E R P UB L IC UT IL IT Y D IS T R IC T
By :
[______________]
R ec eipt a ck n ow le dged a n d
c ons ent ed to :
T H E BAN K O F N E W YO R K M E L LO N T R US T
C O MP AN Y, N .A., a s E scr ow A g ent
By :
Au t h or iz ed O ff ic er
B-X-1
E X HIB IT X
N OT ICE OF P REPAYM E NT
$26 ,5 7 0,0 0 0
T R UC K EE D O NN E R P UB L IC UT IL I T Y D IS T R ICT
R efu n ding R ev e nu e C er tifica tes o f Pa rt icipa t ion
(Water Sys tem Improvement P rojects ),
S er ies 2 0 06
O riginal Issue Date: O ctober 12, 2006
M atur ity
N ov e m be r 15 R ate
O r ig inal
P r incipal Am o unt
O utstanding
Principal Amo unt C U SI P
N O TI C E IS HER E BY given to th e hold ers of th e outs ta nding Tr uck ee D onn er Pu blic U tility D istrict R efu nd in g R evenu e C ertifica tes of
P a rticipation (W ater Sys tem Imp rovem ent P rojects ), S eries 20 06 m atu ring on N ovem b er 15, 2 0__ throu gh a nd inclu ding N ovem b er 1 5, 20__ (th e
“R efund ed C ertifica tes”), tha t s u ch R efu nd ed C ertifica tes ha ve b een called for p repa ym en t prior to ma tu rity on N ovemb er 1 5, 2 016 (th e
“P repa ym en t Da te”) in a ccordance w ith th eir term s at a prepa ym en t p r ice of 1 00 % of th e p rin cipa l am oun t th ereof, tog eth er w ith a ccru ed interes t
evid en ced th ereb y to such da te. The s ou r ce of th e fun ds to b e us ed for su ch prep a ym ent i s the principal of and inter est on in vestmen t securities,
t ogeth er with m oneys h eld un in vested as ca sh, h eretofor e deposited with Th e Ban k of N ew Y ork M ellon Trust C omp an y, N .A., as Es cr ow
A g en t.
Interest on th e R efun d ed C ertifica tes a nd th e p repa ym en t price sha ll b ecom e due and pa ya ble on N ovem ber 15 , 2 016 an d a fter s u ch date
in terest on su ch R efu nd ed C ertificates sh all ceas e to a ccru e an d be pa ya b le.
H old ers of th e R efun d ed C er tifica tes w ill receive p a ym ent of th e p repa ym en t p rice a nd a ccru ed interest to wh ich th ey are en titled u p on
p res entation an d s urrend er th ereof a t th e corporate trust office of Th e B an k of N ew Y ork M ellon Trus t C om pan y, N .A. in th e follow ing ma nn er:
First Class/Registered/Certified Mail Express Delivery Only By Hand Delivery Only
The Bank of New York Mellon
Trust Company, N.A.
Global Corporation Trust
P.O. Box 396
East Syracuse, New York 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
111 Sanders Creek Parkway
East Syracuse, New York 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
Corporate Trust Window
101 Barclay Street, 1s t Floor East
New York, New York 10286
C ertificate hold ers p res enting th eir C ertificates in p ers on for same d ay pa ym ent m us t su rren der th eir certificate(s ) b y 1 :00 PM on th e
P r epa ym en t Date and a ch eck will b e a vailab le for p ickup a fter 2:00 PM . C h ecks n ot pick ed u p b y 4:30PM w ill b e ma iled out to th e certifica te
h old er via first class m a il. If pa ym ent of th e p repa ym ent price is to b e ma de to th e registered ow n er of th e C ertificate, you a re n ot requ ired to
en d ors e th e C er tificate to collect th e P repa ym en t P rice.
Interest on th e p rin cipa l a m ou nt d es ig nated to b e prepa id sha ll ceas e to a ccr u e on and a fter th e P repa ym en t D a te.
IM PO R TA N T N O TIC E
*N eith er th e Tru ck ee D onn er Pub lic U tility D istrict, n or th e Th e Bank of N ew Y ork M ellon Trus t C ompa ny, N.A . sha ll b e h eld
resp ons ib le for th e s election or us e of th e CU SIP numb er, n or is an y rep res en tation m ad e as to its correctness as s h ow n in th e P r epaym en t N otice.
It is in cluded s olely for con ven ien ce of th e H old ers .
By th e Th e Ba nk of N ew Y ork M ellon Trus t C om pan y, N .A ,
as T r uste e
D a te: ____ __, 2015
B-Y-1
E X HIB IT Y
N OT ICE OF D EFE AS ANC E OF
$26 ,5 7 0,0 0 0
T R UC K EE D O NN E R P UB L IC UT IL I T Y D IS T R ICT
R efu n ding R ev e nu e C er tifica tes o f Pa rt icipa t ion
(Water Sys tem Improvement P rojects ),
S er ies 2 0 06
N otice is her eb y given to the holder s of the ou tsta nding T ruckee D onn er P ub lic Ut ilit y D istr ict
R ef undin g R eve nue C ertific ates of Participation (Water Sys tem Imp rove ment P r ojec ts ), S er ies 2006 maturing
on N ov e mb er 15, 20 __ t hr ou gh a nd inc lu din g N ov ember 15, 2 0__ (the “R efu nded C er tifica tes ”) (i) tha t there
ha s b een dep os ited w ith T he B a n k of N ew Y or k M ell on T r u st C o mpa n y, N .A., a s escr ow a gent (the “E scr ow
Ag ent”), mon eys a nd investment s ec ur ities a s p er mitted by the Es cr ow Agr ee ment , da ted as of ___________,
2 01 5, b et we en the T ru ckee D onner P ublic Utility D istr ict a nd t he E scr ow Agent (t he “Agr eem e nt”), the
pr incip a l of a nd the inter es t on whic h wh en due will provid e m one ys which, toget her with su ch ot her moneys
dep os ite d with the E s cr ow Age nt, sha ll b e a va ila b le a nd su ffic ient (ac cor ding to a ver ifica tion r ep or t pr ovided
to the Es crow Agent ) (a ) to pa y the interes t on the R efunde d C er tifica tes scheduled to be pa id on a nd prior to
N ov emb er 1 5, 20 16 a nd (b ) to pr epa y the ou tsta nding pr incip a l of the R efunde d C er tificat es on suc h da te at a
pr ep a yment pr ic e (ex press ed as a per centa ge of the pr incip a l a mount ther eof to b e pr epaid) equa l to 10 0%;
(ii) tha t the E s cr ow Ag ent ha s been irr evoc a b ly instr u cted t o redee m o n N ov emb er 1 5, 20 16 su ch R efunde d
C er tificates; a nd (iii) that t he R efund ed C er tifica tes are de emed to be pa id in a ccor da nc e with S ec tions 3 a nd
9 of the Agr ee ment.
D ated this ___th da y of _________, 20 15.
T R U C KEE D ON N ER P UBL IC UT IL IT Y D IS T RICT
By T HE B AN K O F NE W YO RK M E LL O N T R US T
C OM P AN Y, N.A., a s Es cr ow Age nt
C-1
S C H E D U L E C
R E F UN DE D C E R T IF IC AT ES
$26 ,570 ,000
T R U CK E E D O NN ER PU B LIC UT ILI T Y D IST RIC T
R efunding Rev e nue Certific ates o f P ar tic ipatio n
(Water Sys te m Im prov eme nt Pr ojects),
S er ie s 200 6
M atur ity
N ov e mbe r 15 R ate
O utstanding
Principal Amo unt C U SI P