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6 <br /> Addendum A <br /> Memorandum of Understanding and Agreement <br /> NC Local Government Debt Setoff Clearinghouse Program <br /> This agreement is entered into this_6th_day of–November—, 2002 by and between the <br /> County of Orange_ ("CLAIMANT AGENCY") and the North Carolina League of <br /> Municipalities and the North Carolina Association of County Commissioners acting as the North <br /> Carolina Local Government Debt Setoff Clearinghouse ("CLEARINGHOUSE") <br /> RECITALS <br /> WHEREAS, the Setoff Debt Collection Act, ("ACT"), Article 1 of Chapter 105A of the <br /> North Carolina General Statutes, authorized the North Carolina Department of Revenue <br /> ("DEPARTMENT"), and claimant agencies to cooperate in identifying debtors who owe <br /> money to the State or to local government and who qualify for State income tax refunds; <br /> and established procedures for setting off against any refund the sum of any debt owed to <br /> the State or local government; and <br /> WHEREAS, pursuant to NCGS 105A-3, CLEARINGHOUSE has registered with <br /> DEPARTMENT to submit delinquent debts on behalf of a local agency and has thereby <br /> become authorized to submit delinquent debts on behalf of a local agency under the ACT; <br /> and <br /> WHEREAS, CLAIMANT AGENCY is a local agency authorized to submit a debt owed <br /> to it pursuant to the ACT; and <br /> WHEREAS, CLAIMANT AGENCY desires to enter into this agreement with <br /> CLEARINGHOUSE in order to participate under the Setoff Debt Collection Act to <br /> increase the collection rate of delinquent debts owed to CLAIMANT AGENCY; and <br /> WHEREAS, CLEARINGHOUSE has agreed to submit delinquent debts on behalf of <br /> CLAIMANT AGENCY. <br /> NOW THEREFORE, in consideration of the mutual covenants and agreements, terms and <br /> conditions contained herein, CLAIMANT AGENCY and CLEARINGHOUSE mutually agree as <br /> follows: <br /> I. TERM/TERMINATION <br /> This memorandum of understanding and agreement shall remain and continue in full <br /> force and effect from year to year unless modified or terminated in writing by either party <br /> upon 90 days written notice to the other party. Upon termination of this agreement all <br /> sums due and owing from either party to the other shall remain a lawful obligation of the <br /> party and be due and payable. CLEARINGHOUSE will erase all claimant data files from <br /> its debt setoff system upon termination. <br /> Addendum A <br />