Escrow Agreement printable pdf download

ESCROW AGREEMENT

THIS AGREEMENT, made, executed and delivered this the

day of

, 20

by and between

as Applicant and

as Escrow Agent, and the Kentucky Environmental and Public Protection Cabinet, Department for Natural Resources,

hereinafter called Cabinet,

WITNESSETH:

WHEREAS, Applicant desires to obtain a permit to conduct surface mining operations in the Commonwealth of Kentucky;

and

WHEREAS, the laws of the Commonwealth require that a bond be posted to insure the complete reclamation of the area so

mined and to otherwise guarantee performance with all applicable laws of the Commonwealth administered by the Cabinet;

and

WHEREAS, Applicant desires to meet the bonding requirements for mining in the Commonwealth of Kentucky by

executing such bond and posting surety in the sum of

Dollars ($

) with the Cabinet to be held by the Escrow Agent, which sum is hereby

acknowledged by the Cabinet to be sufficient and acceptable for the permit application number

relating to

acres in

County, Kentucky; and

WHEREAS, such sum shall be placed in the safe custody of the Escrow Agent and the Agent is directed to purchase

certificates of deposit of the

, which certificates of deposit are hereinafter

referred to as The Certificates, and are more fully described as follows, to wit:

CERTIFICATE NO.

DATE OF ISSUANCE

PRINCIPAL AMOUNT

AND WHEREAS, this Agreement is a supplement to the bond filed by the Applicant with permit application number

for a permit to engage in strip mining.

NOW, THEREFORE, in consideration of the premises set forth herein, the parties hereto mutually agree as follows:

1. The Escrow Agent hereby acknowledges receipt of The Certificates above listed, to be safely and securely kept by it for

the stated purposes of this Agreement and subject to the terms and conditions herein, and hereby binds itself to perform

completely under the terms of this Agreement and to dispose of the Certificates or the proceeds therefrom only as provided

herein. The Escrow Agent further agrees to exercise due care in the safekeeping and delivery of The Certificates;

2. The parties agree The Certificates or any subsequent Certificates are and shall be made payable in favor of the Escrow

Agent only and the parties further agree that until such time as the bond is released, all interest accruing on the Certificates

shall be disposed of in accordance with paragraphs 4, 5, and 6 of this Agreement;

3. The parties agree that the Escrow Agent is hereby authorized and directed to insure that The Certificates remain in full

force during the term of this Agreement and the Escrow Agent may, upon notice to all parties, and upon the maturity of The

Certificates, issue new Certificates of face value equal to the outstanding amount of the bond. In the event of such issuance,

the new Certificates shall replace The Certificates herein for all purposes and shall be subject to the conditions of this

Agreement;

4. Any interest accruing on The Certificates shall be held by the Escrow Agent until such time as the bond has been released

or forfeited or the Certificates have matured and been replaced by new Certificates. No interest shall be paid to the Applicant

on any Certificate until such time as the Certificate matures or a full release has been obtained from the Cabinet or until the

bond has been forfeited and any penalty resulting from the cashing of the Certificate has been satisfied;

5. Upon the Cabinet’s written notice to the Escrow Agent of the Cabinet’s certification of the satisfactory completion of all

reclamation and mining activities and the release of such bond in whole or in part, the Applicant may direct the Escrow Agent

to either issue one or more new Certificates in the name of the Applicant for the amount so released or to return the principal

amount so released to the applicant by Cashier’s Check with accrued interest less any penalty for premature cashing of such

Certificate;

NCR-11 Rev. 07/00

Escrow Agreement

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