8359-93 Revenue Bonds Refund Outstanding Sewage Segregation

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EXHIBIT B ESCROW AGREEMENT Dated as of , 1993 Between NORWEST BANK INDIANA, N.A. and CITY OF SOUTH BEND, INDIANA THIS ESCROW AGREEMENT (the "Escrow Agreement") is made and entered into as of , 1993, by and between the CITY OF SOUTH BEND, INDIANA (the "Issuer") , and NORWEST BANK INDIANA, N.A. , a banking corporation organized under the laws of the United States (the "Escrow Agent") . RECITALS 1. The Issuer has issued its Sewage Works Revenue Bonds of 1989 authorized by Ordinance No. 7951-88 and dated February 1, 1989 (the "Prior Bonds") of which $8,925,000 in principal amount are presently outstanding. 2. Concurrently with the execution of this Escrow Agreement, the Issuer has executed, issued and delivered refunding bonds, designated as "City of South Bend Sewage Works Refunding Revenue Bonds of 1993", in the aggregate principal amount of $ (the "Refunding Bonds") , the proceeds of' which will be used to defease and advance refund the Prior Bonds and pay costs of issuance of the Refunding Bonds and incidental expenses. NOW, THEREFORE, in consideration of the premises, the covenants and agreements hereinafter contained, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed by and among the parties hereto as follows: Section 1. There is hereby established and created with the Escrow Agent the following irrevocable trust account (the "Escrow Account") for the benefit of the holders and registered owners of the Prior Bonds designated: "City of South Bend Sewage Works Refunding Revenue Bond Escrow Account of 1993". Section 2. The Issuer hereby deposits with the Escrow Agent, and the Escrow Agent hereby acknowledges receipt of, the sum of $ in immediately available funds and obligations funded from proceeds from the sale of the Refunding Bonds and certain moneys held in connection with the Prior Bonds. The Escrow Agent shall deposit such funds in the Escrow Account and hold in the Escrow Account such obligations, as described on Schedule I attached hereto (the "Governmental Obligations") . The uninvested funds shall be maintained as a cash balance. The maturing principal of the Governmental Obligations, together with interest thereon, will be sufficient to pay the amounts required by Section 3 hereof. The Escrow Agent hereby accepts the funds so deposited and the Governmental Obligations and the duties and trusts imposed hereby. Section 3. The Escrow Agent agrees to use the moneys available in the Escrow Account solely to pay (i) the principal of and interest on the Prior Bonds which is due and payable prior to February 1, 1997, as the same becomes due, and (ii) the outstanding nrincinal of and accrued interest on the Prior Bonds which mature