Common use of Effect of Withdrawal Clause in Contracts

Effect of Withdrawal. a. On the effective date of a withdrawal from the Authority: i. the Authority shall cease providing transportation services in the withdrawn unit of election; and ii. the financial obligations of the Authority attributable to the withdrawn unit of election cease to accrue. b. Until the amount of revenue from an Authority's sales tax collected in a withdrawn unit of election after the effective date of withdrawal and paid to the Authority equals the total financial obligation of the unit at the time of withdrawal, the sales tax will continue to be collected in the territory of the election unit. c. After the board receives certification of an election favoring withdrawal from the Authority, the board shall: i. calculate the total financial obligation of the unit at the time of withdrawal as set forth in Section 10.5; ii. certify to a withdrawn unit of election the total financial obligation of the unit to the Authority; and iii. certify to the Commission the total financial obligation of the unit to the Authority. d. After receipt of certification from the board of the total financial obligation of the unit, the Commission shall: i. continue to collect sales tax in the withdrawn unit and remit it to the Authority until the amount of the total financial obligation of the unit at the time of withdrawal has been collected; and ii. discontinue collecting the tax in the territory of the withdrawn unit of election after the total financial obligation has been collected and remitted to the Authority. e. On the effective date of a withdrawal from the Authority, title to all real estate and improvements located in the unit of election owned or partially owned by the Authority shall immediately vest in the Authority, and the Authority may continue to use the real estate and improvements in the withdrawn unit of election as necessary for the continuation of service to the remaining units of election for a period of 25 years or the duration of the Authority's remaining federal grant obligation for the facility, whichever is longer, provided that the Authority shall be responsible for all operation and maintenance costs of the facility during the period of use. At the end of the period, the real estate and improvements will revert to the unit of election. f. Withdrawal from the Authority does not affect the right of the Authority to travel through the territory of the unit of election to provide service to a unit of election that is a part of the Authority.