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HomeMy WebLinkAbout2025-4639 - Ordinance - 10/23/2025ORDINANCE NO. 2025-4639 ORDINANCE AUTHORIZING THE REDEMPTION OF A PORTION OF CITY OF COLLEGE STATION GENERAL OBLIGATION IMPROVEMENT & REFUNDING BONDS, SERIES 2013 AND APPROVING A RELATED ESCROW AGREEMENT WHEREAS, City of College Station (the "City") has issued its City of College Station General Obligation Improvement & Refunding Bonds, Series 2013 (the "Bonds"); WHEREAS, the Bonds maturing on or after February 15, 2023 are subject to redemption prior to stated maturity, at the option of the City, in whole or in part, in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2022, or any date thereafter, at a redemption price equal to the principal amount thereof plus accrued interest to the date fixed for redemption; WHEREAS, this City Council of the City finds and determines that it is necessary and in the best interests of the City to use excess interest and sinking fund tax collections to redeem a portion of the Bonds, thus reducing the total dollar amount of debt service paid over the original life of the Bonds; and WHEREAS, the City is authorized to deposit any available funds or resources, directly with a trust company or commercial bank that does not act as a depository for the City, in order to make financial arrangements for the final payment of its outstanding bonds; and WHEREAS, the ordinance that authorized the issuance of the Bonds provides that notice of redemption of the Bonds shall be mailed to the registered owners thereof at least thirty days prior to the redemption date; and WHEREAS, it is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CITY OF COLLEGE STATION: Section 1. The City hereby exercises its option to redeem a portion of the Bonds on December 16, 2025 (the "Redemption Date") in the principal amounts as shown below. The Bonds below constitute the "Redeemed Bonds": Principal Principal Redemption Maturitv Date Amount Amount CUSIP Date Outstanding Redeemed 02/15/2027 $455,000 $455,000 194469AP7 100% 02/15/2028 $475,000 $475,000 194469AQ5 100% 02/15/2029 $495,000 $495,000 194469AR3 100% 02/15/2030 $510,000 $510,000 194469AS1 100% 02/15/2031 $540,000 $540,000 194469AT9 100% 02/15/2032 $560,000 $560,000 194469AU6 100% 02/15/2033 $580,000 $580,000 194469AV4 100% ORDINANCE NO. 2025-4639 Page 2 of 22 Section 2. On or before December 16, 2025, the City shall deposit with or make available to The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the "Paying Agent/Registrar"), funds in an amount sufficient to pay the redemption price of the portion of the Redeemed Bonds called for redemption on the Redemption Date. The Redemption Price for the Redeemed Bonds is $3,665,893.52 being $3,615,000.00 in principal amount and $50,893.52 in accrued but unpaid interest. Section 3. The Redeemed Bonds called for redemption shall be presented for redemption and payment to the Paying Agent/Registrar in accordance with a notice of redemption and shall not bear interest after the Redemption Date. The Paying Agent/Registrar is hereby authorized and directed to disseminate a notice of redemption to be mailed by the Paying Agent/Registrar at least thirty days prior to the Redemption Date by United States mail, first-class postage prepaid, to the registered owner of each Redeemed Bond to be redeemed at its address as it appeared on the day such notice of redemption is mailed and to major securities depositories, national bond rating agencies, MSRB Electronic Municipal Market Access, and bond information services. Section 4. The City Manager and Assistant City Manager/CFO (each an "Authorized Officer") of the City is further authorized to enter into and execute on behalf of the City with the escrow agent named therein, an escrow agreement, which escrow agreement will provide for the escrow of the funds until needed only to pay the Redeemed Bonds so called for redemption plus accrued but unpaid interest. Each Authorized Officer is authorized to purchase such securities in the escrow fund under the escrow agreement, to execute such subscriptions for the purchase of the United States Treasury Securities, State and Local Government Series and to transfer and deposit such cash from available funds, as may be necessary or appropriate for the escrow fund described in the escrow agreement. The City may obtain, at its sole discretion, a report or certificate verifying that any investments purchased under the escrow fund will mature and pay interest in such amounts which, together with any uninvested funds in the escrow fund, will be sufficient to pay, when due, the principal of and interest on the Redeemed Bonds. Section 5. Each Authorized Officer are hereby authorized and directed to take such actions and to execute and deliver such documents, certificates and receipts, including without limitation notice of redemption and material events notices with respect to the Redeemed Bonds, as necessary or appropriate to consummate the transactions authorized by this Ordinance and to redeem the Redeemed Bonds in accordance with the provisions and requirements of said Bonds. PASSED AND APPROVED ON OCTOBER 23, 2025. P_ VUA�11' - City Secretary; City of College Station Ma or; City of College Station ORDINANCE NO. 202S-4639 Page 3 of 22 ESCROW AGREEMENT THIS ESCROW AGREEMENT, dated as of October 23, 2025 (the Agreement) is entered into by and between the City of College Station (the Issuer) and The Bank Of New York Mellon Trust Company, N.A., Dallas, Texas, as escrow agent (the Escrow Agent). The addresses of the Issuer and the Escrow Agent are shown on Exhibit A attached hereto and made a part hereof. WITNESSETH: WHEREAS, the Issuer heretofore issued and there presently remain outstanding the obligations (the Refunded Obligations) described in Exhibit B attached hereto and made a part hereof; and WHEREAS, the Refunded Obligations are scheduled to be payable at such times and in such amounts as are set forth in Exhibit C attached hereto and made a part hereof; and WHEREAS, when firm banking arrangements have been made for the payment of principal and interest to the maturity or redemption dates of the Refunded Obligations, then the Refunded Obligations shall no longer be regarded as outstanding except for the purpose of receiving payment from the funds provided for such purpose; and WHEREAS, Chapter 1207, Texas Government Code (Chapter 1207), authorizes the Issuer to deposit an amount of money sufficient to provide for the payment or redemption of the Refunded Obligations to be paid or redeemed in whole or in part without issuing refunding bonds, directly with a paying agent for any of the obligations to be refunded, paid, or redeemed, and such deposit, if made before such payment dates and in sufficient amounts, shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and WHEREAS, Chapter 1207 further authorizes the Issuer to enter into an escrow agreement with any Paying Agent for any of the Refunded Obligations, or a trust company or commercial bank that does not act as a depository for the Issuer, with respect to the safekeeping, investment, administration and disposition of any such deposit, upon such terms and conditions as the Issuer and such Paying Agent, trust company or commercial bank may agree, provided that such deposits may be invested only in obligations described in Section 1207.062 of Chapter 1207, which obligations may be in book entry form, and which shall mature and/or bear interest payable at such times and in such amounts as will be sufficient to provide for the scheduled payment of principal and interest on the Refunded Obligations when due; and WHEREAS, the Escrow Agent is a paying agent for the Refunded Obligations, and this Agreement constitutes an escrow agreement of the kind authorized and required by said Chapter 1207; and ORDINANCE NO. 2025-4639 Page 4 of 22 WHEREAS, Chapter 1207 makes it the duty of the Escrow Agent to comply with the terms of this Agreement and timely make available to the Paying Agents for the Refunded Obligations the amounts required to provide for the payment of the principal of and interest on such obligations when due, and in accordance with their terms, but solely from the funds, in the manner, and to the extent provided in this Agreement; and WHEREAS, the Issuer has on hand available funds which shall be deposited to the credit of the Escrow Fund created pursuant to the terms of this Agreement; and WHEREAS, the cash balances from time to time on deposit in the Escrow Fund will be sufficient to pay interest on the Refunded Obligations as it accrues and becomes payable and the principal of the Refunded Obligations on their maturity dates or dates of redemption; and WHEREAS, to facilitate the payment of the principal of and interest on the Refunded Obligations, and to facilitate receipt and transfer of proceeds of the Escrow Fund, the Issuer desires to establish the Escrow Fund at the principal corporate trust office of the Escrow Agent; and NOW, THEREFORE, in consideration of the mutual undertakings, promises and agreements herein contained, the sufficiency of which hereby are acknowledged, and to secure the full and timely payment of principal of and the interest on the Refunded Obligations, the Issuer and the Escrow Agent mutually undertake, promise, and agree for themselves and their respective representatives and successors, as follows: ARTICLE I DEFINITIONS AND INTERPRETATIONS Section 1.01. Definitions. Unless the context clearly indicates otherwise, the following terms shall have the meanings assigned to them below when they are used in this Agreement: Code means the Internal Revenue Code of 1986, as amended, or to the extent applicable the Internal Revenue Code of 1954, together with any other applicable provisions of any successor federal income tax laws. Escrow Fund means the fund created by this Agreement to be administered by the Escrow Agent pursuant to the provisions of this Agreement. Escrowed Securities means, subject to any restrictions set forth in any order, ordinance or resolution of the Issuer authorizing the issuance of the Refunded Obligations, the obligations permitted by Section 1207.062 of Chapter 1207 or cash or other obligations permitted by Section 1207.062 of Chapter 1207 substituted therefor pursuant to Article IV of this Agreement. Paying Agent means, with respect to the Refunded Obligations, The Bank of New York Mellon Trust Company, N.A., as paying agent/registrar therefor. 4 ORDINANCE NO. 2025-4639 Page 5 of 22 Section 1.02. Other Definitions. The terms Agreement, Issuer, Escrow Agent and Refunded Obligations, when they are used in this Agreement, shall have the meanings assigned to them in the preamble to this Agreement. Section 1.03. Interpretations. The titles and headings of the articles and sections of this Agreement have been inserted for convenience and reference only and are not to be considered a part hereof and shall not in any way modify or restrict the terms hereof. This Agreement and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to achieve the intended purpose of providing for the early retirement of the Refunded Obligations in accordance with applicable law. ARTICLE II DEPOSIT OF FUNDS Section 2.01. Deposits in the Escrow Fund. On or before December 16, 2025, the Issuer shall deposit, or cause to be deposited, with the Escrow Agent, for deposit in the Escrow Fund, the funds described in Exhibit D attached hereto and made a part hereof, and the Escrow Agent shall, upon the receipt thereof, acknowledge such receipt to the Issuer in writing. ARTICLE III CREATION AND OPERATION OF ESCROW FUND Section 3.01. Escrow Fund. The Escrow Agent has created on its books a special trust fund and irrevocable escrow to be known as the City of College Station Series 2025 Escrow Fund (the Escrow Fund). The Escrow Agent hereby agrees that upon receipt thereof it will irrevocably deposit to the credit of the Escrow Fund the funds described in Exhibit D. Such deposit, all proceeds therefrom, and all cash balances from time to time on deposit therein (a) shall be the property of the Escrow Fund, (b) shall be applied only in strict conformity with the terms and conditions of this Agreement, and (c) are hereby irrevocably pledged to the payment of the principal of and interest on the Refunded Obligations, which payment shall be made by timely transfers of such amounts at such times as are provided for in Section 3.02 hereof. When the final transfers have been made for the payment of such principal of and interest on the Refunded Obligations, any balance then remaining in the Escrow Fund shall be transferred to the Issuer, and the Escrow Agent shall thereupon be discharged from any further duties hereunder. Section 3.02. Pavment of Principal and Interest. The Escrow Agent is hereby irrevocably instructed to transfer from the cash balances from time to time on deposit in the Escrow Fund and make available to the Paying Agent for the Refunded Obligations, the amounts required to pay the principal of and interest on the Refunded Obligations at their redemption date and interest thereon to such redemption date. Section 3.03. Sufficiencv of Escrow Fund. The Issuer represents that the cash balances in the Escrow Fund will be at all times sufficient to provide moneys for transfer to the Paying Agent 5 ORDINANCE NO. 2025-4639 Page 6 of 22 at the times and in the amounts required to pay the interest on the Refunded Obligations as such interest comes due and the principal of the Refunded Obligations as the Refunded Obligations mature or are subject to redemption, all as more fully set forth in Exhibit E attached hereto and made a part hereof. If, for any reason, at any time, the cash balances on deposit or scheduled to be on deposit in the Escrow Fund shall be insufficient to transfer the amounts required by each Paying Agent for the Refunded Obligations to make the payments set forth in Section 3.02 hereof, the Issuer shall timely deposit in the Escrow Fund, from any funds that are lawfully available therefor, additional funds in the amounts required to make such payments. Notice of any such insufficiency shall be given as promptly as practicable as hereinafter provided, but the Escrow Agent shall not in any manner be responsible for any insufficiency of funds in the Escrow Fund or the Issuer's failure to make additional deposits thereto. Section 3.04. Trust Fund. The Escrow Agent shall hold at all times the Escrow Fund wholly segregated from all other funds and securities on deposit with the Escrow Agent; it shall never allow the assets of the Escrow Fund to be commingled with any other funds or securities of the Escrow Agent; and it shall hold and dispose of the assets of the Escrow Fund only as set forth herein. Uninvested cash and other assets of the Escrow Fund shall always be maintained by the Escrow Agent as trust funds for the benefit of the owners of the Refunded Obligations; and a special account thereof shall at all times be maintained on the books of the Escrow Agent. The owners of the Refunded Obligations shall be entitled to the same preferred claim and first lien upon the Escrow Fund to which they are entitled as owners of the Refunded Obligations. The amounts received by the Escrow Agent under this Agreement shall not be considered as a banking deposit by the Issuer, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The amounts received by the Escrow Agent under this Agreement shall not be subject to warrants, drafts or checks drawn by the Issuer or, except to the extent expressly herein provided, by the Paying Agent. Section 3.05. Securitv for Cash Balances. Cash balances from time to time on deposit in the Escrow Fund shall, to the extent not insured by the Federal Deposit Insurance Corporation or its successor, be continuously secured with securities or obligations that are eligible under the laws of the State of Texas, having a market value at least equal to such cash balances. ARTICLE IV LIMITATION ON INVESTMENTS Section 4.01. General Limitations. Except as provided in Section 4.02 and 4.03, the Escrow Agent shall not have any power or duty to invest or reinvest any money held hereunder, or to make substitutions of any Escrowed Securities, or to sell, transfer or otherwise dispose of Escrowed Securities. Section 4.02. Substitutions and Investments. At the written direction of the Issuer, the Escrow Agent shall invest cash balances in the Escrow Fund, make substitutions of Escrowed Securities or redeem any Escrowed Securities and reinvest the proceeds thereof or hold such C ORDINANCE NO. 202S-4639 Page 7 of 22 proceeds as cash, together with other moneys or securities held in the Escrow Fund provided that the Issuer delivers to the Escrow Agent the following: (1) an opinion by an independent certified public accountant that after such substitution, investment or reinvestment the principal amount of the securities in the Escrow Fund (which shall be noncallable, not pre -payable obligations described in Section 1207.062 of Chapter 1207, subject to any restrictions set forth in any order, ordinance or resolution of the Issuer authorizing the issuance of the Refunded Obligations), together with the interest thereon and other available moneys in the Escrow Fund, will be sufficient to pay, without further investment or reinvestment, as the same become due, the principal of, interest on and premium, if any, on the Refunded Obligations which have not previously been paid, and (2) an unqualified opinion of nationally recognized municipal bond counsel to the effect that (a) such substitution, investment or reinvestment will not cause the Refunded Obligations to be "arbitrage bonds" within the meaning of Section 103 of the Code or the regulations thereunder in effect on the date of such substitution or reinvestment, or otherwise make the interest on the Refunded Obligations subject to federal income taxation, and (b) such substitution, investment or reinvestment complies with the Constitution and laws of the State of Texas and with all relevant documents relating to the issuance of the Refunded Obligations. The Escrow Agent shall have no responsibility or liability for loss or otherwise with respect to investments made at the explicit written direction of the Issuer. Section 4.03. Reinvestment of Certain Cash Balances in Escrow by Escrow Agent. The Escrow Agent shall, at the written direction of the Issuer, reinvest cash balances in the Escrow Fund in United States Treasury Certificates of Indebtedness, Notes or Bonds - State and Local Government Series with an interest rate equal to zero percent (0%) (the Zero SLGs) to the extent such obligations are available from the Department of Treasury. All such re -investments shall be made only from the portion of cash balances derived from the maturing principal of and interest on any Escrowed Securities. Section 4.04. Arbitrate. The Issuer hereby covenants and agrees that it shall never request the Escrow Agent to exercise any power hereunder or permit any part of the money in the Escrow Fund to be used directly or indirectly to acquire any securities or obligations if the exercise of such power or the acquisition of such securities or obligations would cause any Refunded Obligations to be an "arbitrage bond" within the meaning of the Code. ORDINANCE NO. 202S-4639 Page 8 of 22 ARTICLE V APPLICATION OF CASH BALANCES Section 5.01. In General. Except as provided in Sections 3.01, 3.02, 4.02 and 4.03 hereof, no withdrawals, transfers, or reinvestment shall be made of cash balances in the Escrow Fund. ARTICLE VI RECORDS AND REPORTS Section 6.01. Records. The Escrow Agent will keep books of record and account in which complete and correct entries shall be made of all transactions relating to the receipts, disbursements, allocations and application of the money deposited to the Escrow Fund and all proceeds thereof, and such books shall be available for inspection at reasonable hours and under reasonable conditions by the Issuer and the owners of the Refunded Obligations. Section 6.02. Reports. While this Agreement remains in effect, the Escrow Agent annually shall prepare and send to the Issuer a written report summarizing all transactions relating to the Escrow Fund during the preceding year, including, without limitation, credits to the Escrow Fund and transfers from the Escrow Fund for payments on the Refunded Obligations or otherwise, together with a detailed statement of any Escrowed Securities and the cash balance on deposit in the Escrow Fund as of the end of such period. ARTICLE VII CONCERNING THE PAYING AGENTS AND ESCROW AGENT Section 7.01. Representations. The Escrow Agent hereby represents that it has all necessary power and authority to enter into this Agreement and undertake the obligations and responsibilities imposed upon it herein, and that it will carry out all of its obligations hereunder. Section 7.02. Limitation on Liabilitv. (a) The liability of the Escrow Agent to transfer funds for the payment of the principal of and interest on the Refunded Obligations shall be limited to the cash balances and any proceeds of the Escrowed Securities from time to time on deposit in the Escrow Fund. Notwithstanding any provision contained herein to the contrary, neither the Escrow Agent nor the Paying Agent shall have any liability whatsoever for the insufficiency of funds from time to time in the Escrow Fund or any failure of the obligors of the Escrowed Securities to make timely payment thereon, except for the obligation to notify the Issuer as promptly as practicable of any such occurrence. (b) The recitals herein and in the proceedings authorizing the Refunded Obligations shall be taken as the statements of the Issuer and shall not be considered as made by, or imposing any obligation or liability upon, the Escrow Agent. The Escrow Agent is not a parry to the proceedings authorizing the Refunded Obligations and is not responsible for nor bound by any of the provisions 8 ORDINANCE NO. 2025-4639 Page 9 of 22 thereof In its capacity as Escrow Agent, it is agreed that the Escrow Agent need look only to the terms and provisions of this Agreement. (c) The Escrow Agent makes no representations as to the value, conditions or sufficiency of the Escrow Fund, or any part thereof, or as to the title of the Issuer thereto, or as to the security afforded thereby or hereby, and the Escrow Agent shall not incur any liability or responsibility in respect to any of such matters. (d) It is the intention of the parties hereto that the Escrow Agent shall never be required to use or advance its own funds or otherwise incur personal financial liability in the performance of any of its duties or the exercise of any of its rights and powers hereunder. (e) The Escrow Agent shall not be liable for any action taken or neglected to be taken by it in good faith in any exercise of reasonable care and believed by it to be within the discretion or power conferred upon it by this Agreement, nor shall the Escrow Agent be responsible for the consequences of any error of judgment; and the Escrow Agent shall not be answerable except for its own action, neglect or default, nor for any loss unless the same shall have been through its negligence or willful misconduct. (f) Unless it is specifically otherwise provided herein, the Escrow Agent has no duty to determine or inquire into the happening or occurrence of any event or contingency or the performance or failure of performance of the Issuer with respect to arrangements or contracts with others, with the Escrow Agent's sole duty hereunder being to safeguard the Escrow Fund, to dispose of and deliver the same in accordance with this Agreement. If, however, the Escrow Agent is called upon by the terms of this Agreement to determine the occurrence of any event or contingency, the Escrow Agent shall be obligated, in making such determination, only to exercise reasonable care and diligence, and in event of error in making such determination the Escrow Agent shall be liable only for its own willful misconduct or its negligence. In determining the occurrence of any such event or contingency the Escrow Agent may request from the Issuer or any other person such reasonable additional evidence as the Escrow Agent in its discretion may deem necessary to determine any fact relating to the occurrence of such event or contingency, and in this connection may make inquiries of, and consult with, among others, the Issuer at any time. (g) The Escrow Agent agrees to accept and act upon instructions or directions pursuant to this Agreement sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods (Electronic Communication), provided, however, that the Issuer shall provide to the Escrow Agent an incumbency certificate listing designated persons authorized to provide such instructions, which incumbency certificate shall be amended whenever a person is to be added or deleted from the listing. If the Issuer elects to give the Escrow Agent instructions by Electronic Communication and the Escrow Agent in its discretion elects to act upon such instructions, the Escrow Agent's reasonable understanding of such instructions shall be deemed controlling. The Escrow Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Escrow Agent's reliance upon and compliance with such instructions. The Issuer agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Escrow Agent, and the risk or interception and misuse by third parties. E ORDINANCE NO. 202S-4639 Page 10 of 22 (h) The Escrow Agent may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents or attorneys. (i) The Escrow Agent may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, written investment direction, statement, instrument, opinion, notice or other paper or document believed by it to be genuine and to have been signed or presented by the proper party. 0) To the extent permitted by law, the Issuer agrees to indemnify the Escrow Agent, its officers, directors, employees and agents for, and hold them harmless against, any loss, liability, or expense incurred without negligence or bad faith on their part arising out of or in connection with its acceptance or administration of the Escrow Agent's duties under this Agreement, including the cost and expense (including its counsel fees) of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. The foregoing indemnification shall survive the termination of this Agreement or the resignation or removal of the Escrow Agent. (k) The Escrow Agent may consult with counsel and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it in accordance with such advice in the absence of any fraud or negligence on the part of the Escrow Agent Section 7.03. Compensation. (a) Concurrently with the initial deposit to the Escrow Fund, the Issuer shall pay to the Escrow Agent, as a fee for performing the services hereunder and for all expenses incurred or to be incurred by the Escrow Agent in the administration of this Agreement, the amount set forth in Exhibit F. attached hereto and made a part hereof, the sufficiency of which is hereby acknowledged by the Escrow Agent. In the event that the Escrow Agent is requested to perform any extraordinary services hereunder, the Issuer hereby agrees to pay reasonable fees to the Escrow Agent for such extraordinary services and to reimburse the Escrow Agent for all expenses incurred by the Escrow Agent in performing such extraordinary services, and the Escrow Agent hereby agrees to look only to the Issuer for the payment of such fees and reimbursement of such expenses. The Escrow Agent hereby agrees that in no event shall it ever assert any claim or lien against the Escrow Fund for any fees for its services, whether regular or extraordinary, as Escrow Agent, or in any other capacity, or for reimbursement for any of its expenses. (b) The Issuer covenants to timely pay for all future paying agency services of the Paying Agent for the Refunded Obligations in accordance with the paying agent fee schedule now in effect through the final payment of the Refunded Obligations. Additionally, the Paying Agent has agreed to look only to the Issuer for the payment of such fees and reimbursement of such expenses, and for the benefit of the registered owners of the Refunded Obligations, to perform the services as Paying Agent without regard to the future payment of such fees and expenses. The Paying Agent shall in no event assert any claim or lien against the Escrow Fund for any fees for their services, whether regular or extraordinary, as Paying Agent, or in any other capacity, or for reimbursement for any of its expenses. 10 ORDINANCE NO. 2025-4639 Page 11 of 22 Section 7.04. Notice of Redemption of Refunded Obligations. The Escrow Agent serves as Paying Agent/Registrar for the Refunded Obligations. Not less than thirty days prior to the Redemption Date for the Refunded Obligations, the Escrow Agent will give the notice of redemption to the registered holders of the Refunded Obligations in accordance with the order authorizing the issuance of the Refunded Obligations. The Bank hereby acknowledges and represents that no amounts are due to it under the Paying Agent/Registrar Agreement pertaining to the Refunded Obligations and that the Bank will not apply funds from any fund established for the Refunded Obligations for the payment of any fees owed to the Bank. Section 7.05 Successor Escrow Agents. (a) If at any time the Escrow Agent or its legal successor or successors should become unable, through operation or law or otherwise, to act as escrow agent hereunder, or if its property and affairs shall be taken under the control of any state or federal court or administrative body because of insolvency or bankruptcy or for any other reason, a vacancy shall forthwith exist in the office of Escrow Agent hereunder. In such event the Issuer, by appropriate action, promptly shall appoint an Escrow Agent to fill such vacancy. If a successor Escrow Agent has not been appointed within 60 days from the date the Escrow Agent submits its notice of resignation, the Escrow Agent may, at the expense of the Issuer, petition a court of competent jurisdiction to have a successor appointed. Such court may thereupon, after such notice, if any, as it may deem proper, prescribe and appoint a successor Escrow Agent. (b) Any successor Escrow Agent shall be: (i) a corporation, bank or banking association organized and doing business under the laws of the United States or the State of Texas; (ii) be authorized under such laws to exercise corporate trust powers; (iii) be authorized under Texas law to act as an escrow agent; (iv) have its principal office and place of business in the State of Texas; (v) have a combined capital and surplus of at least $5,000,000; and (vi) be subject to the supervision or examination by Federal or State authority. (c) Any successor Escrow Agent shall execute, acknowledge and deliver to the Issuer and the Escrow Agent an instrument accepting such appointment hereunder, and the Escrow Agent shall execute and deliver an instrument transferring to such successor Escrow Agent, subject to the terms of this Agreement, all the rights, powers and trusts of the Escrow Agent hereunder. Upon the request of any such successor Escrow Agent, the Issuer shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor Escrow Agent all such rights, powers and duties. (d) The Escrow Agent at the time acting hereunder may at any time resign and be discharged from the trust hereby created by giving not less than sixty (60) days' written notice to the Issuer. No such resignation shall take effect unless a successor Escrow Agent shall have been appointed by the owners of the Refunded Obligations or by the Issuer as herein provided and such successor Escrow Agent shall be an entity authorized by law to serve as an escrow agent and shall have accepted such appointment, in which event such resignation shall take effect immediately upon the appointment and acceptance of a successor Escrow Agent. 11 ORDINANCE NO. 2025-4639 Page 12 of 22 (e) Under any circumstances, the Escrow Agent shall pay over to its successor Escrow Agent proportional parts of the Escrow Agent's fee and. ARTICLE VIII MISCELLANEOUS Section 8.01. Notice. Any notice, authorization, request, or demand required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when mailed by registered or certified mail, postage prepaid addressed to the Issuer or the Escrow Agent at the address shown on Exhibit A attached hereto. The United States Post Office registered or certified mail receipt showing delivery of the aforesaid shall be conclusive evidence of the date and fact of delivery. Any party hereto may change the address to which notices are to be delivered by giving to the other parties not less than ten (10) days prior notice thereof. Prior written notice of any amendment to this Agreement contemplated pursuant to Section 8.08 and immediate written notice of any incidence of a severance pursuant to Section 8.04 shall be sent to the Municipal Securities Rulemaking Board. Section 8.02. Termination of Responsibilities. Upon the taking of all the actions as described herein by the Escrow Agent, the Escrow Agent shall have no further obligations or responsibilities hereunder to the Issuer, the owners of the Refunded Obligations or to any other person or persons in connection with this Agreement. Section 8.03. Binding Agreement. This Agreement shall be binding upon the Issuer and the Escrow Agent and their respective successors and legal representatives, and shall inure solely to the benefit of the owners of the Refunded Obligations, the Issuer, the Escrow Agent and their respective successors and legal representatives. Section 8.04. Severabilitv. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. Section 8.05. Texas Law Governs. This Agreement shall be governed exclusively by the provisions hereof and by the applicable laws of the State of Texas. Section 8.06. Time of the Essence. Time shall be of the essence in the performance of obligations from time to time imposed upon the Escrow Agent by this Agreement. Section 8.07. Effective date of Agreement. This Agreement shall be effective upon receipt by the Escrow Agent of the funds described in Exhibit D. together with the specific sums stated in subsection (a) of Section 7.03 for Escrow Agent and paying agency fees, expenses, and services. 12 ORDINANCE NO. 2025-4639 Page 13 of 22 Section 8.08. Amendments. This Agreement shall not be amended except to cure any ambiguity or formal defect or omission in this Agreement. No amendment shall be effective unless the same shall be in writing and signed by the parties thereto. No such amendment shall adversely affect the rights of the holders of the Refunded Obligations. Section 8.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original for all purposes, and all counterparts shall together constitute one and the same instrument. Section 8.10. Miscellaneous. The Bank makes the following representations and covenants pursuant to Chapters 2252, 2271, 2274, and 2276, Texas Government Code, as amended (the "Covered Verifications"), in entering into this Agreement. As used in such verifications, "affiliate" means an entity that controls, is controlled by, or is under common control with the Bank within the meaning of SEC Rule 405, 17 C.F.R. § 230.405, and exists to make a profit. Liability for breach of any such verification during the term of this Agreement shall survive until barred by the applicable statute of limitations and shall not be liquidated or otherwise limited by any provision of this Agreement, notwithstanding anything in this Agreement to the contrary. Notwithstanding anything in this Agreement to the contrary, the Issuer reserved and retains all rights and remedies at law and equity for pursuit and recovery of damages, if any. Notwithstanding anything contained herein, the representations and covenants contained in this section shall survive termination of the agreement until the statute of limitations has run. (a) Not a Sanctioned Companv. The Bank represents that neither it nor any of its parent company, wholly- or majority -owned subsidiaries, and other affiliates is a company identified on a list prepared and maintained by the Texas Comptroller of Public Accounts under Section 2252.153 or Section 2270.0201, Texas Government Code, as amended. The foregoing representation excludes the Bank and each of its parent company, wholly- or majority -owned subsidiaries, and other affiliates, if any, that the United States government has affirmatively declared to be excluded from its federal sanctions regime relating to Sudan or Iran or any federal sanctions regime relating to a foreign terrorist organization. (b) No Bovcott of Israel. The Bank hereby verifies that it and any parent company, wholly- or majority -owned subsidiaries, and other affiliates, if any, do not boycott Israel and will not boycott Israel during the term of this Agreement. As used in the foregoing verification, "boycott Israel" has the meaning provided in Section 2271.001, Texas Government Code, as amended. (c) No Discrimination Against Firearm Entities. The Bank hereby verifies that it and any parent company, wholly- or majority -owned subsidiaries, and other affiliates, do not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association and will not discriminate against a firearm entity or firearm trade association during the term of this Agreement. As used in the foregoing verification, "discriminate against a firearm entity or firearm trade association" has the meaning provided in Section 2274.001(3), Texas Government Code, as amended. 13 ORDINANCE NO. 2025-4639 Page 14 of 22 (d) No Boycott of Enerav Companies. The Bank hereby verifies that it and any parent company, wholly- or majority -owned subsidiaries, and other affiliates, if any, do not boycott energy companies and will not boycott energy companies during the term of this Agreement. As used in the foregoing verification, "boycott energy companies" has the meaning provided in Section 2276.001(1), Texas Government Code, as amended. (Execution Page Follows) 14 ORDINANCE NO. 202S-4639 Page 15 of 22 EXECUTED as of the date first written above. THE CITY OF COLLEGE STATION Jeff Kersten Assistant City Manager / CFO THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. Title: Escrow Agreement City of College Station 2025 ORDINANCE NO. 202S-4639 INDEX TO EXHIBITS Exhibit A Addresses of the Issuer and Escrow Agent Exhibit B Schedule of Refunded Obligations Exhibit C Schedule of Debt Service on Refunded Obligations Exhibit D Escrow Deposit Exhibit E Escrow Fund Cash Flow Exhibit F Escrow Agent Fees Page 16 of 22 ORDINANCE NO. 2025-4639 Page 17 of 22 EXHIBIT A ADDRESSES OF THE ISSUER AND ESCROW AGENT ISSUER The City of College Station Attn: Finance Department 1101 Texas Ave. College Station TX 77842 ESCROW AGENT The Bank of New York Mellon Trust Company, N.A. Attn: Corporate Trust Services 2001 Bryan Street, 1 Oth Floor Dallas, TX 75201 A-17 ORDINANCE NO. 202S-4639 EXHIBIT B SCHEDULE OF REFUNDED OBLIGATIONS Page 18 of 22 City of College Station General Obligation Improvement & Refunding Bonds, Series 2013 Principal Principal Redemption Maturitv Date Amount Amount CUSIP Date Outstanding Redeemed 02/15/2027 $455,000 $455,000 194469AP7 100% 02/15/2028 $475,000 $475,000 194469AQ5 100% 02/15/2029 $495,000 $495,000 194469AR3 100% 02/15/2030 $510,000 $510,000 194469AS1 100% 02/15/2031 $540,000 $540,000 194469AT9 100% 02/15/2032 $560,000 $560,000 194469AU6 100% 02/15/2033 $580,000 $580,000 194469AV4 100% B-18 ORDINANCE NO. 202S-4639 EXHIBIT C SCHEDULE OF DEBT SERVICE ON REFUNDED OBLIGATIONS Period Fx ing 08/20/2013 02/15/2014 08/15/2014 02/15/2015 08/15/2015 02/15/2016 08/15/2016 02/15/2017 08/15/2017 02/15/2018 08/15/2018 02/15/2019 08/15/2019 02/15/2020 08/15/2020 02/15/2021 08/15/2021 02/15/2022 08/15/2022 02/15/2023 08/15/2023 02/15/2024 08/15/2024 02/15/2025 08/15/2025 02/15/2026 08/15/2026 02/15/2027 08/1512027 02/15/202S 08/15/2028 02/15/2029 08/15/2029 02/1512030 08/15/2030 02/15/2031 08/15/2031 02/15/2032 08/15/2032 02/15/2033 Principal Cnapan Interest Debt Service 1,275,OU0 2.000% 422,123.70 1,697,123.70 421,434.33 421,434.33 1,400,000 3.000 % 421,434.38 1,821,434.38 400,434.38 400,434.38 1,370,000 3.000% 400,434.38 1,770,434.33 379,884.38 379,884.38 1,380,ow 4.000% 379,884.38 1,759,884.38 352,284.38 352,284.38 1,295,000 4.000% 352,284.38 1,647,284.38 326,384.38 326,384.33 1,195,000 5.000% 326,384.38 1,521,384.38 296,509.38 296,509.38 1,270,0U0 5.000% 296,509.38 1,566,509.38 264,759.38 264,759.38 1,345,000 *' 9� 264,759.38 1,609,759.38 238,884.38 238,984.38 1,415,000 5.000% 238,884.38 1,653,S84.38 203,509.38 203,509.38 1,495,000 5.000% 203,509.38 1,698,509.38 166,134.38 166,134. 38 1,585,000 5.000% 166,134.38 1,751,134.33 126, 509.33 126, 509. 38 1,680,000 5.00096 126,509.38 1,806,509.38 84,509.38 84,509.38 4-410,000 4.000% 84,509.38 524,509.38 75,709.38 75,709.33 455,000 4.DOO % 75,709.38 53U,709.38 66,609.38 66,609.38 475,000 4.D00% 66,609.38 541,609.38 57,109.38 57,109.38 495,000 4.125% 57,109.38 552,109.38 46,900.00 46,900.00 510,000 4.250% 46,900.00 556,900.00 36,062.50 36,062.50 540,000 4.250% 36,062.50 576,062.50 24,587.50 24,587.50 560,000 4.250% 24,587.50 584,587.50 12,687.50 1207.50 580,000 4.375% 1207.50 592,687.50 20,760,000 7,583,930.10 28,343,930.10 C-19 Page 19 of 22 ORDINANCE NO. 2025-4639 EXHIBIT D ESCROW DEPOSIT (i) Deposit with Respect to the Refunded Obligations: Page 20 of 22 The sum of $3,653,979.29 shall be deposited with the Escrow Agent on November 12, 2025 from available funds to purchase the following securities: Security Principal Interest Maturity Type Amount Rate Date SLGS $3,653,979.00 $4.220% 12/16/2025 The sum of $0.29 deposited with the Escrow Agent shall remain uninvested in cash and shall be used to redeem the Refunded Bonds, on the date shown in Exhibit B hereto. (1) Preliminary, subject to being finalized during escrow pricing. D-20 ORDINANCE NO. 2025-4639 Page 21 of 22 EXHIBIT E ESCROW FUND CASH FLOW (1) Present Value Net Escrow to 11/12/2025 Date Principal Interest Receipts @ 3.4766753% 12/16/2025 3,653,979.00 11,914,23 3,665,893.23 3,653,979.00 3,653,979.00 11,914.23 3,665,893.23 3,653,979.00 (2) Preliminary, subject to being finalized during escrow pricing. E-21 ORDINANCE NO. 202S-4639 EXHIBIT F ESCROW AGENT FEES (Please see attached) Page 22 of 22