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RESOLUTION NO. 17 SERIES 2010 A RESOLUTION AUTHORIZING THE DEFEASANCE OF THE 2002 GENERAL OBLIGATION REFUNDING BONDS, THE CREATION OF AN ESCROW ACCOUNT, AND THE EXECUTION OF AN ESCROW AGREEMENT WHEREAS, City of Louisville (the "City"), in the County of Boulder and State of Colorado, is a home rule city duly organized and existing under the Constitution and laws of the State of Colorado and its City Charter; and WHEREAS, the City has heretofore issued its General Obligation Refunding Bonds, Series 2002 (the "Bonds"); and WHEREAS, the City wishes to defease the outstanding bonds in accordance with the terms of Ordinance No. 1402, Series 2002 which authorized the issuance of the Bonds (the "Bond Ordinance"); and WHEREAS, the City will establish an escrow account pursuant to an escrow agreement for purposes of defeasing that portion of the Bonds as determined by the City; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LOUISVILLE, IN BOULDER COUNTY, STATE OF COLORADO: Section 1. Authorization of Cash Defeasance of the Bonds. The City hereby authorizes and directs that an escrow account (the "Escrow Account") be established to pay, defease, and discharge the Bonds. The form of escrow agreement (the "Escrow Agreement") between the City and UMB Bank, N.A. (the "Escrow Bank") which is on file with the City Clerk is hereby approved; and the appropriate officials of the City are hereby authorized and directed to complete the form of and to execute and deliver the Escrow Agreement in substantially the form so on file, and thereby to establish the Escrow Account to be accumulated and maintained with the Escrow Bank pursuant to the Escrow Agreement. The City shall purchase the federal securities necessary to establish the Escrow Account as provided in the Escrow Agreement. Section 2. Maintenance of Escrow Account. The Escrow Account shall be maintained in an amount at the time of those initial deposits therein and at all times subsequently at least sufficient, together with the known minimum yield to be derived from the initial investment and any temporary reinvestment of the deposits therein or any part thereof in federal securities, to pay the principal of and interest on the Bonds as the same become due (the "Bond Requirements"). Section 3. Use of Escrow Account. Moneys shall be withdrawn by the Escrow Bank from the Escrow Account in sufficient amounts and at such times to permit the payment without default of the Bond Requirements. -1-