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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 /> • <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 /> 1. Board may retain all payments made by City to Board to prepare to administer the City <br /> Ordinance. <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 <br />