2005/04/27 Council Agenda Packet

Final May 19,2004 13 B. Withdrawal. No Member Transit System may withdraw for thirty-six months after joining the Pool. After the thirty-six month period, a Member Transit System may withdraw at the end of any Pool fiscal year. However, no Member Transit System may give notice to withdraw during the first 36 months of the Pool. A member must give the Pool 12 months written notice of its intent to withdraw from the Pool. Any member who withdraws will not be allowed to rejoin the Pool for a period of thirty-six months. C. Effect of Cancellation and Withdrawal. The cancellation or withdrawal of one or more Member Transit Systems shall not terminate this Agreement. No withdrawing or canceled Member Transit System shall be entitled to payment or return of any premium contributed to the Pool or to any distribution of assets. Any distribution of equity accounts will be established by the Board of Directors provided such policies do not jeopardize the financial integrity of the Pool. D. Unpaid Liabilities.The cancellation or withdrawal of a Member Transit System shall not terminate its responsibilities until all claims and other unpaid liabilities covering the period of its membership have bee finally resolved and the Board has determined the final amount of payments due from the withdrawing or canceled Member Transit System for the period of its membership. Article 16 TERMINATION A. Initial Period. This Agreement may be terminated any time during its first thirty-six months by the written consent of the Governing Boards of all Member Transit Systems. After the first thirty-six months, this Agreement may be terminated by the written consent of the Governing Boards of three-fourths of the Member Transit Systems. Upon termination, this Agreement and the Pool shall continue for the purpose of disposing of all claims, distribution of assets and all other functions necessary to wind up the affairs of the Pool. B. Distribution of Assets. Upon termination, assets of the Pool shall be distributed to terminating Member Transit Systems proportionate to their equity account and premium payments made during the last thirty- six months of the Pool. The Board shall distribute the assets to terminating Member Transit Systems within six months after the disposition of the last pending claim or loss covered by the Pool. C. Contingent Liabilities. Upon termination, the Board shall wind up and dissolve the business affairs of the Pool. The Board shall determine, and Member Transit System shall pay, each Transit System's fair share of any additional premium amounts necessary for final disposition of all claims and losses covered by the Pool. A Member Transit System's share of such additional premiums shall be determined in the same manner as that provided hereinabove for annual premiums, and shall be treated as if it were the next year's annual premium for that Transit System. i