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BOOK 60 PAGE SO proposal, Harbor Federal proposes to issue a check in the amount of $503,191.24 to Indian River County, with the understanding that a cash deposit and trust agreement would be executed by the parties whereby the County would deposit the check in a non-interest bearing account with Harbor Federal subject to the control of a trustee appointed by the County Commission. The proposed cash deposit and trust agreement is essentially identical to the cash deposit and escrow agreement approved for use under the Subdivision Ordinance and this office has no objection to approval of this alternate security arrangement. This office would suggest, however, that Mr. Jeff Barton, Director of Office of Management and Budget be appoint- ed as the trustee, as is done on other similar County accounts, rather than the County Attorney. RECOMMENDED ACTION: It is recommended that the Board favorably consider this request, approve substitution of the proposed cash deposit and trust agreement, naming the Director of Office of Management and Budget as Trustee, and releasing the present Letter of Credit from Sun Bank. This substitution would have no effect on the completion date for the improvements nor would there be any lost revenue to the County. Commissioner Bowman had a question about this transfer, and Attorney Brandenburg explained that the original developer backed out, the Bank took it over, and banks don't like to pay another bank for a letter of credit. We, therefore, are working out an arrangement to save them the amount on the irrevocable letter of credit. Attorney Brandenburg believed that Commissioner Wodtke has a question regarding interest and normally we don't receive interest on a letter of credit. Commissioner Bowman asked why'this calls for a cash deposit and trust agreement rather than an escrow agreement, and OMB Director Barton explained it is because a third party is handling it. Commissioner Wodtke stated that although he realizes the owner is a bank, his question is are we going to allow an individual to do this same thing. He felt this could open us up to future problems. In addition, if we are going to deposit this in a non-interest savings and loan account, how much is that account insured for; there is $500,000 involved here. Attorney Brandenburg confirmed that our ordinance provides that an individual can do this also. OMB Director Barton stated that we have done this on a couple of the mining bonds, but the interest rate was negotiated 95