Carmel/NBD Bank Trust Agreement
SENT BY' ICE .M [LLfR
; 9-13-96 : 3:41PM
COpy CB'HER~
3178443498:#12
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TRUST AGREEMENT
BETWEEN
THE
CITY OFCARMBL. INDIANA
AND
NBD..BANK, N.A.
As Escrow Trustee
Dated.as airy) :zt),1996
TRUST AGREEMENT
This agreement (hereinafter the "Trust Agreement") made and entered into as of
'-,2.5 , 1996, by and between the City of Carmel, Indiana (the "Issuer"), a municipal
corporation existing under the laws of the State of.Indiana and NBD Bank, N.A. (hereinafter the
"Escrow Trustee"), a banking and financial institution incorporated under the laws of the United
States of America having its principal office in the City of Indianapolis, Indiana, as Escrow
Trustee under this Trust Agreement with the Issuer.
WITNESSETH
WHEREAS, the Issuer has heretofore issued its Sewage Works Refunding Revenue
Bonds of 1985, dated November 1,1985 (hereinafter; the "1985 Bonds") pursuant to Ordinance
No. S-47 (the "1985 Ordinance"), in the total amount of Two Million Five Hundred Twenty
Thousand Dollars ($2,520,000) of which Eight Hundred Thousand Dollars ($800,000) in
principal amount are now outstanding; and
WHEREAS, the Issuer has accumulated moneys in the funds and accounts created by the
1985 Ordinance sufficient to pay the principal ,of and redemption premium and accrued interest
on the ]985 Bonds until November 1, 1996, the earliest date on which the 1985 Bonds can be
called for redemption; and
WHEREAS, the Issuer has concurrently with the execution and delivery of this Trust
Agreement, deposited with the Escrow Trustee $844,600 from moneys held pursuant to the 1985
Ordinance (the "Issuer's Funds"); and
WHEREAS, the execution and delivery of this Trust Agreement have been in all respects
duly and validly authorized by an ordinance duly passed and approved by the Common Council
of the Issuer;
NOW THEREFORE, THIS AGREEMENT WITNESSETH: That in order to secure the
payment of the principal of and redemption premium and interest on the ]985 Bonds according
to their tenor, purport and effect, and in order to secure the performance and observance of all
of the covenants and conditions herein and in the 1985 Bonds, and for and in consideration of
the mutua] covenants herein contained, and of the acceptance by the Escrow Trustee of the trust
hereby created, the Issuer has executed and delivered this Trust Agreement.
TO HAVE AND TO HOLD the same unto the Escrow Trustee, and its successor or
successors and its or their assigns forever;
IN TRUST, NEVERTHELESS, upon the terms l!nd trusts herein set forth, to secure the
payment of the 1985 Bonds and the redemption premium and interest payable thereon, and to
secure also the observance and performance of all the terms, provisions, covenants and
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conditiQIIS of this Trost Agreement, and for tlieequal and ratable benefiiand security :of all and
singular owners of aU 1985 Bonds without'preference,prj6rity o!",di,s!inction as to 1ieJ! ,or
otherwise, ~xcept as otherwise. hcreiDafter pro~ded, of anyone 1985 Bond,or as between
prillCipal and intenlst; and it isherel!y ll1\lt1ll\l1y covenanted a:nd a~thato,theterrm; and
condilions upon' which the 19~ Bonds are to be paid and redeemed and a: portion of the IsIlUeI'S
Pundsh1veSted, and the trusts and conditions i1p~Dwhich theplooged GovemmentObugliiions
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and the Cash, Requirement (each as henlinafter defmed) are to be,held anddisbursed,are as
follows: ' . ' '
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1. The Escrow Trustee acknowl~dgeS'[ece!pt, from llieIssuer,oftAeIssuer's Funds
amHhe use thereoNo purchase' the securities set forth: ill Exhibit A attaChed bereto, (the
"GoV~mlnenWbligatioDs") 'Ivith, the residlW to .be held ,as cash urthe amount 01'$ ;7 ..19, 7~
(the "Cash Requiremeni~) to be applied on .the principal of and }l1tere~ Oil the '1985 BQllds
ma~ring qnNbyember I, 199~ atld thereafter arid to redeem on November 1, 1996 all 1985
Bo~, with a redemption prenllU~ of 2%. TIle GoVen;ment Obligations Mve been,4ePoSited
with the <Escrow ~and will bear interest at:such rates and will mature at such, time and,
insuchanlQullts so that, when paid attOrdilig:to'tIillir respective.tilft\s, together with the Cash
Reqtiiremeill, suffi!liem mone)'s will be available to.pay the 1985cBonds maturing on and after
November 1, 1996 with ititei'est thei'eon , and,to ~~ 011 November:t, 19.9'6,'flie eatliestdate
the 1985 Bonds can be Called for redemption, ali remaining 198.5 Bonds, with ~a redemption
premium of 2 % . -
2. (a) A Trust Acqounris ci'ealed:h~by. ThIlGov~nt.Qbliglltionsand ihe
Cash Requimment win be held in trust by the Escrow Trustee in the Trust,Account andmch
Government'Obligatiohson deposit with ,the EScro.'!I:' Trustee, including inte.restto be ~d
thereon, together with tQe Cash Ret}uirement. are pleilged..solelYiand irrevocably for thebetJefit
ofthe6'Yner~ oflbe 198!) Bcmas. .Pursuimt to thiS. Section, ,t!1e Issuer irrevocably instroctsthe'
&crowTrus1ee to pay the principal of and interest 011 all ille 1985 Bonds matlJrlngCl!f November'
I, 1996 arid to redeem on November!, 1996 al[l985 BOIlWl'witha ri:demption premium of 2 %,
and the Escrow Trustee hereby agrees to follow said instruction.
(b) The EscruwTrusteeand the Issuer agree to redeem o;p Npyember 1, 1996; all
cfutst:ailding,1985 Boi1ds due Quam! after Novembeil, '199.7. 'The Escrow TJ\l8tee and the
Issuer shall compietethe notice attached as Etllibit Band.maii the notice in acccirdai1ce with
Exhibit B subStaittliilly in t:ljefomi _heG hereto'a.s Exhibit Ii.
(e) All inierest ~g8 ~ene.ratedin the Trust Account which. remain in the Trust
Account:af'ter redemption of all the 1985 Bonds;shlill be deposited with the Issuer,.
3. The .Bcrow Trnsteebereby Ilctept.'l the trusts i!p.posed 'upon it bY this TrllSt.
Ag~einenlandagrees to perform said tnisls as a corporate t1:usteecoroinarily,woUldpedoIDlsliid
trusts under a corporate <indenture.
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SENT BY ICE MlUER
; 9-13-96 3:44PM
COpy CEl\'I'ER~
;1l78443498:#15
, The Escrow'Trustee may execute any of ..the trus18 or powe~ hereof and pCtform',any of
'its duties by or through 'attorneys. agents; reCeivers or employees but ,shall be answerable for
the conduct.Qf thfI,same inaecorrlancewith the'standMd specitied'Bl:lOye; aildshallbe entitled
t<.) advice of COunsel concerpmgall matters Of trwts hereof andtht: duties ~reunder.,and may
,in all cases pay such,reasonable,compensation,tli "Usuch'attorneys, cerlifiedpublic accolJ1ltaD18,
ageilts",j'eceiversandemployees as,may reasonably be,'employed iD. connection with the'trusts,
hereof. The ,Escrow Trustee may ,aCl upon the opinion or advice of. anyattQmey (who may be
the~ttomeyor attOrneys for the.Issuer). The Escrow Tnu;tee,shalt:not be responSible fof,any
'loss or ~age resulting from,any aeti6uornon-acti6nin good faith in reliance upon such
opinion 9radvicc. .
The Escrow 'Trustee aml,Lbe entitledJo'paYmetltaqdloneimbur-sem~D! tmmlhe Iisuer
in colll1eCtion;with serVices. under this T~ Agreement. The Escrow TrusteeSJWLreceive its
payment, in: the, loia! amount.af $ ,,f7:5,oQ ,upon the funding ,arthe. TrusLAccoom.The
payment tu be made to the EscrOw TJ:listee slWl not .COl1lititute a lien against '!he TrustAccoun~,.
4. The ,Escrow Trustee shall have,the,powerrosell, ln1Illifer, requesUhe nldemption'
oi'.atherviise diSpose of some.or all ofithe Gove=enrOblig!UioDS;in the 1)wt ACc<ni* meno
substitute,o~ Oovenimei1tObli~tion;;,ofequal or greatenecunly therefor proVided 'that the
Esl:row'Trustee shall receive the unqualified oPinion of'acerrified public aCcOunUmtot a.firm
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9f certit1ed,publii; #c.OllnlJi'n(~ (0 !h~, effe,ct .ihatsuch. disposition. and substitution shall not redUce
the sufficiency and adequacy oCtile TrustAccount to fully provide for all paymeniS enumerated
in.misTrust Agreement. '
IN Wl'TNE.'lS WHEREOF, the; parties hereto mvecause<Lthis Trust Agreejnem.19 be
executed for and on their bcllilJfthe day ai)dyear fn:st hereinabQveWritten.
CITY Of c::ARMEL,INDIANA
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SoW By:'lCE MllilR
: \H3c96 ': 3:45PM:
COpy CENTER~
Attest:.
~ -?;;AA~ ~AliL
TERRI HAWl(iNS, TRUST OFFICER
42:5511.\
NaD'BANK, N.A.
By: ~a~
Pri~; DANIEL A. LANE
Title: VICE PRESIDENT
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3178443498; #16
s~~ BY:](E,MILLER
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Cash - $ 7/.,/- -.
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; ~-13~~6 ; 3:4-5PM ;
COIW CENTER~
EXHIBIT A
A~cb~d !O Illld .made a,Part of the
Trust Agreement executed, by the
City of ~m1el. Indianalind
NBD Himk, N.A.. as Escrow Twstee
Dated as-of 9-.:z'5, 1996'
scliEDtJLe'oFUNITED ST:ATll,S OBliGATIONS
Maturity
/tJ.,5/-91,
T." .
Par Amount
;f~ IJt?tJ
CO\lPonRale
317844-34~8;#17
SENT BY: ICE MlUER:
: 9~13-96' : 3:46P~
COpy CENTER~
3178443498.:#18
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__ .EXHIBIT B
NOTICE OF:RBD~ON
Owliersof t!:e Five l{~red Fifty-fIVe Tho1lSalldDoliars ($555,000) in aggr:egiite
pri~pal amount of Sewage Wofks. Refunding ~vetiue,Bopd~ of 1985" of the City of Carmel,
Indiana. Qated November 1, ,1985, numbered .... through .' and. :maturingon
November, 1,. 1997 through November 1, 1998 (the "BondS"), a:rehereby notifiild.that, ~h
Bonds )Vill be redl;eined Upon P~iltlltion, .at the paying agent for theBO~. die prfucipal
corporate trust office'ofNBD'Bank, N,A., AttentignCotporare Trust Departmeilt. One,lllrli.na
Square, indianapolis, I1Kliana 46266, on November 1, 1996, at face value,plllS a premium of
iwo percent (2%) olthe face value, 'plus. accrued interest to:Novembei' I, 1996. AIl.of such
130nlls shall.cease to bear interest on'Novembwl, 1996.
Datcitthis
c1S.yof'
~ 1996.
NBD BANK; N.Ai. .
CITY OF CARMEL, INDIANA
Mail to .registered owners at least thirtr(30) days but',nOt more thansikty (60) days prior to
Nov. eniber 1, 1996. ' ..
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ICE
MILLER
DONADIO
& RYAN
September 13. 1996.
City of Carmel
Carmel. Indiana
Re: Sewage Works. Refundmg.ReVenue.Borids lif-l985 (the "Boruls")
Ladies lUId Gt;ntlem<:n:
We ,have eXlUllined Ii certifi~d tr!lllSCripi o.f p~oci:edinS~ refuting to tlie ,above:<:3ptioned
. Bonds lUld a form of Trust Agreement which authorizes the defeasance and re\iemptjOll of the.
Bonds. We have relied upon the Certified irailscriptQf procc;edi~gs of.the Gity of Cannel
('Issuer") and. the, form of Trust .Agreement.and liave,llotundertaken to verify any ,facts by
independent investigaj,ism'i
Tliel'edemptioii. aild defeasanCllcif the,Bqllds as'descrioed in the TruSt -Agreemellt will
not be subject to.a transferred proceedS. penalty under.the Internal Revenue, Code of 1986. as
<imende!i to this date.
We ,.are e~PFtessing the P,I:l?fessionat Judgm~nl; of"th~ attornejs panicipa~ing in the
lransaclion as 10 the legal issues ad4ressed herein. By ellpressing.Ulaljildgrnent. the umlersigned
dQes p.ot be:\;omein insurer or guarantor of thaI exp~sion!lfpf9fessional ju<dgment or Qf the
transaction. Nor does'tbe rendering of that judgment guarantee the outCome Qf any legal, dispute,
that may arise out of the transaction.
We are qualified to practice law only iil the state of!ndiana. We express noviews.with
respect to the l1lvlst)f.llIly'jUrisdicgo.n other than the internallaw'sof.the State ofIndllina:aitd the
federal laws of me united states of America. This' expression of judgment is based. upon laws
ineffeCt,.on tliedite hereof and. we expressly disClaiin any underta.JCihgtO adviSe you of any
subsequent chat)ges therein.
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SENT BY: ICE MILLER
S-13~96 3:47PM;
CpfY CENTER'"
J1784iJ4S8;#20
'..": . ..,.......
City of Cannel
September 13, 1996
Page 2'
1b.isiIlformation 'is being, furnished to you for your sole use only in' connection'with this
tnUlSactionand no, other party is entitled to rely, onil wiihoutour written ,cQIllll:nt,
Very iiulyyours,
JJ J1;1tJ1;u /)cM~ ~ ~