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LEGISLATIVE RESEARCH CENTER
File #: 25-0256    Version: 2
Type: Resolution Status: Approval of Agenda and Consent Agenda
File created: 5/14/2025 In control: Finance
On agenda: 6/16/2025 Final action:
Title: Vote to adopt a resolution authorizing the execution of an Escrow Agreement
Attachments: 1. Approving Resolution - County of Chatham Defeasance Escrow, 2. Escrow Agreement - Chatham County 2012 LOBs Defeasance
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Title

Vote to adopt a resolution authorizing the execution of an Escrow Agreement

 

Abstract

Introduction & Background: On November 4, 2024, the Board Approved an Interlocal Agreement to Merge the Water and Wastewater Systems of the City of Sanford and the County of Chatham.

                     

Discussion & Analysis: As part of the Interlocal Agreement, the County has certain responsibilities that must be performed to eliminate the debt owed by the Utility System and the Southeast District. Section 2.02(e) states that “prior to the Transfer Date, (County will) create and fund a defeasance escrow to pay when coming due the portion of the County’s 2012 limited obligation bonds (the “2012 LOBs”) allocated to utility equipment in order to ensure a release of the lien on the utility equipment currently serving as collateral for the 2012 LOBs.”

 

This Resolution authorizes the escrow agreement with Regions Bank as the escrow agent to fulfill this requirement.

 

Recommendation/Motion: Motion to adopt a resolution authorizing the execution of an Escrow Agreement.