1. Any contract, franchise or other agreement into which a department enters after merger for goods or services is subject to rescission by either party if one or more of the participating political subdivisions withdraw from the department or the department is dissolved. 2. A valid claim against a department arising from law enforcement activity is not diminished or altered by reason of the dissolution of the department. The participating political subdivisions at the time of dissolution are liable for any claims resulting from any pending action or proceeding which involves any debt, demand, liability or obligation or which has been brought by or against the department after the merger, irrespective of the nature of such matter in litigation.
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