03.06 - Joint Powers Agreement with National Joint Powers Alliance

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(d) to pay any federal,state or local income, employment, death or other tax which may be properly imposed on or levied against Group Employee Benefit,Other Financial and Risk Management Service, a Pool, or on benefits paid therefrom; (e) to pay for any bond and to pay the premiums on any insurance purchased by a Pool, including,but not limited to liability insurance,"stop loss"insurance and other insurance intended to pay directly or indirectly the benefits established with respect to a Pool; and (f) to pay the SC any service fee payable to it pursuant to, or authorized pursuant to, this Agreement. 6.3 Investment of Program Funds. Program Funds shall be held and invested in a manner that is consistent with any applicable legal requirements regarding the holding and investment of funds by the Participant Members who are governmental units within the meaning of Minn. Stat. 471.59. 6.4 Withdrawal of Participant. In the event of the withdrawal of a Participant prior to the termination of this Agreement or of a Pool,Program Funds attributable to contributions of such Participant shall not be returned to such Participant. 6.5 Termination of Pool. In the event of termination of a Pool, any portion of the Program Funds that has been designated for use solely in connection with the terminating Pool,and any other portion allocated to the terminating Pool by the Board in its sole discretion,shall be distributed to the Pool Participants in a manner to be determined by the Board,which may include the following: (a) payment of benefits to or on behalf of enrolled employees with respect to claims arising prior to such termination; (b) provision of similar benefits for such employees; (c) payment of reasonable and necessary expenses incurred in such termination. (d) payment of taxes; and (e) cash payments to Participant Members according to a formula established by the Board. Upon such termination,the Board shall continue to serve for such period of time and to the extent necessary to carry out the directions of the preceding sentence. The Participants who receive such distributions shall be solely responsible for determining whether,and to what extent, any amounts they receive will be distributed to individuals who were covered by benefit programs provided by the terminating Pool. 6.6 Funding of Risk. Premiums may be adjusted,but no retroactive assessment shall be made without consent and agreement by the affected Participants. Subject to their obligation to provide accurate information regarding the individuals who will receive benefits from a Pool, no Participant or its employees shall bear any financial risk other than the agreed upon premium. -10-