Escrow Agreement - Larson Danielson Construction - Howard Park Redevelopment Project

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ESCROW AGREEMENT This Agreement is entered into this 11 day of December , 2018 , by and between City of South Bend Board of Public Works ("Owner"), .arson -Danielson Construction Co Inc ("Contractor"), and Ist Source !Bank N ("Escrow"), witnesseth: WHEREAS, Owner and Contractor entered into a contract providing for the construction by the Contractor of a public building, work or improvement subject to the provisions of IC 36-1-12-14; and WHEREAS, said construction contract provides that portions of payments by Owner to Contractor shall be retained (herein called "Retainage") by Owner, and placed in an Escrow Account; NOW, THEREFORE, it is agreed as follows: 1. Owner shall deposit with Escrow all sums retained from payments due to Contractor under the Contract between Owner and Contractor as sums are retained from time to time during the administration of the Contract and performance of services and furnishing of materials by Contractor. 2. Escrow shall invest all escrowed principal in such obligations and investments as may be selected by Escrow in its sole discretion, provided that said obligations and investments do not reduce the escrowed principal. Escrow may in its sole discretion commingle the escrowed funds with funds held pursuant to other escrow agreements. 3. The Escrow Agent shall hold the escrowed principal until receipt of written authorization from the Owner specifying the portions of the escrowed funds to be released from the Escrow. The Escrow Agent shall consider it a direction provided a written copy of the Contractor's claim is attached, at which time the remittance of the designated portion of escrowed principal will be released. 4. In event of controversy, the Escrow Agent shall pay over the sum held by it hereunder as follows: a.) Payment by Joint Authorization: Upon receipt of a joint written authorization executed by the Contractor and the Owner, the Escrow Agent will make distribution in accordance with such written direction. b.) Payment by Owner: Upon receipt from Owner of a copy of the architect's certificate pursuant to Article 14 of the General Conditions showing that the Owner has terminated the employment of the Contractor, the Escrow Agent shall pay to the Contractor such amount, if any, as the Owner directs and shall pay the balance to the Owner. c.) Upon receipt of a certified copy of a court order receiving the disputed claim or directing a specific distribution of all or any portion of said funds, Escrow Agent will make distribution in accordance with such order. *** Execute in triplicate — One copy with original signatures going to each of the three parties noted *** Page 1 of 3