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ARTICLE VI <br />ADMINISTRATION OF TAXES IF THE <br />ORDINANCE IS CHALLENGED AS BEING INVALID <br />A. Impoundment of funds. <br />1. When a legal action is begun challenging the validity of the imposition of the tax, the <br />City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under <br />Article II. C., until a court of competent jurisdiction renders a final and non -appealable judgment that <br />the tax is valid. <br />2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall <br />transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten <br />days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non - <br />appealable. <br />B. Costs of administration. Should a final judgment be entered in any court of the State of <br />California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to <br />taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that: <br />Ordinance. <br />1. Board may retain all payments made by City to Board to prepare to administer the City <br />2. City will pay to Board and allow Board to retain Board's cost of administering the City <br />Ordinance in the amounts set forth in Article IV of this Agreement. <br />3. City will pay to Board or to the State of California the amount of any taxes plus interest <br />and penalties, if any, that Board or the State of California may be required to rebate or refund to <br />taxpayers. <br />Rev. 11/14 6 <br />