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d. Records. The Contractor agrees to keep satisfactory records pertaining to the use of Project <br />property, and submit to the Department upon request such information as may be required to assure <br />compliance with this Section 14 of this Agreement. <br />e. Incidental Use. The Contractor agrees that: <br />(1) General. Any incidental use of Project property will not exceed that permitted under applicable <br />Federal and State laws, regulations, and directives. <br />(2) Alternative Fueling Facilities. As authorized by 49 U.S.C. § 5323(p), any incidental use of its <br />federally financed alternative fueling facilities and equipment by non-transit public entities and <br />private entities will be permitted, only if the: <br />(a) Incidental use does not interfere with the Contractor's Project or public transportation <br />operations; <br />(b) Contractor fully recaptures all costs related to the incidental use from the non-transit public <br />entity or private entity; <br />(c) Contractor uses revenues received from the incidental use in excess of costs for planning, <br />capital, and operating expenses that are incurred in providing public transportation; and <br />(d) Private entities pay all applicable excise taxes on fuel. <br />f. Title to Vehicles. The Certificate of Title to all vehicles purchased under the Approved Budget for <br />this Project shall be in the name of the Contractor. The Department's Public Transportation Division <br />shall be recorded on the Certificate of Title as first lien-holder. In the event of project termination or <br />breach of contract provisions, the Contractor shall, upon written notification by the Department, <br />surrender Project equipment and/or transfer the Certificate(s) of Title for Project equipment to the <br />Department or the Department's designee. <br />g. Encumbrance of Project Property. The Contractor agrees to maintain satisfactory continuing <br />control of Project property as follows: <br />(1) Wr'~tten Transactions. The Contractor agrees that it will not execute any transfer of title, lease, <br />lien, pledge, mortgage, encumbrance, third party contract, subagreement, grant anticipation <br />note, alienation, innovative finance arrangement (such as a cross border lease, leveraged <br />lease, or otherwise), or any other obligation pertaining to Project property, that in any way would <br />affect the continuing Federal and State interest in that Project property. <br />(2) Oral Transactions. The Contractor agrees that it will not obligate itself in any manner to any <br />third party with respect to Project property. <br />(3) Other Actions. The Contractor agrees that it will not take any action adversely affecting the <br />Federal and State interest in or impair the Contractor's continuing control of the use of Project <br />ProPertY• <br />h. Transfer of Project Property. The Contractor understands and agrees as follows: <br />(1) Contractor Request. The Contractor may. transfer any Project property financed with Federal <br />assistance authorized under 49 U.S.C. chapter 53 to a local governmental authority to be used <br />for any public purpose with no further obligation to the Federal Governmerit, provided the <br />transfer is approved by the Federal Transit Administrator and conforms with the requirements of <br />49 U.S.C. §§ 5334(h)(1) through 5334(h)(3). <br />Updated 9/17/10 Page 21 of 34 <br />