Common use of Declaration of Invalidity Clause in Contracts

Declaration of Invalidity. In the event that a court of competent jurisdiction declares that the District cannot pay and/or that the Agency cannot receive payments of the Tax Increment, declares that the Agency cannot pay the Tax Increment to developers, or takes any other action which has the effect of eliminating or reducing the payments of Tax Increment received by the Agency, the Agency’s obligation to pay the Tax Increment to developers shall be reduced or eliminated accordingly, the Agency, and the District (at no out-of-pocket cost to the District) shall take such steps as are reasonably required to not permit the payment and/or receipt of the Tax Increment to be declared invalid.