(A) All escrow funds will be held jointly in the name of the city and the property owner placing the funds in escrow; however, only the city may initiate the withdrawal of funds.
(B) All interest earned will apply to the balance of escrow funds.
(C) Escrow monies will be acceptable in two forms:
(1) Cash will be placed in a passbook savings account.
(2) Certificate of deposit issued by any financial institution, which is insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation, shall be held in the city depository. The developer shall execute four copies of a letter assigning the deposit to the city and authorizing the city to withdraw the deposit when necessary to complete the project. Such letter of assignment must be accepted in writing by the financial institution.
(3) The escrow will be placed in an institution insured by either the FDIC or FSLIC and the deposits shall not exceed the maximum FDIC or FSLIC insured limits in any one lending institution.
(D) If the cost of construction is less than the funds in escrow, the city will return any excess funds to the individual placing those funds in escrow.
(E) Present escrow funds. All escrow money deposited with the city prior to the effective date of this policy shall remain on deposit under the original escrow contract agreement.
('68 Code, App. B, § 4.06) (Ord. 8-1989-34, passed 8-8-89)