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Assurances to the Department, and applicable Federal and State <br />laws, regulations, and directives. <br />(d) Administrative .Requirements. The Contractor agrees to comply with <br />the following State administrative requirements: <br />(1) U.S. DOT regulations, "Uniform Administrative Requirements for Grants <br />and Cooperative Agreements to State and Local Governments," 49 <br />C.F.R. Part 18 at (http://www.access.gpo.gov/nara/cfrlcfr-table- <br />search.html#pape1). <br />(2) Title 9 North Carolina Administrative Code (N.C.A.C.) Subchapter 3M at <br />(http:/(reports.oah.state.nc.us/ncac.asp). <br />(3) Title 19A North Carolina Administrative Code (N.C.A.C.) Subchapter <br />5B at (http://reports.oah.state.nc.us/ncac.asp). <br />The Contractor agrees that State laws and regulations control Project funding and <br />implementation. The contractor also agrees that in addition to State law certain Federal laws, <br />regulations, and directives as noted throughout this Agreement may be applicable to the <br />Project. <br />To achieve compliance with changing federal and state requirements, the Contractor makes <br />note that federal, state requirements may change and the changed requirements will apply to <br />this Agreement as required. <br />(e) Contractor's Primary Responsibility to Comply with Federal and State <br />Requirements. Irrespective of involvement by any other participant in the <br />Project, the Contractor agrees that it, rather than the participant, is <br />ultimately responsible for compliance with all applicable Federal and <br />State laws; regulations, and directives, the Master Agreement between <br />the FTA and the Department, and this Agreement, except to the extent <br />that the Department determines otherwise in writing. Unless otherwise <br />authorized in writing by the Department, the Contractor shall not assign <br />any portion of the work to be performed under this Agreement, or <br />execute any contract, amendment, or change order thereto, or obligate <br />.itself in any manner with any third party with respect to its rights and <br />responsibilities under this Agreement without the prior written <br />concurrence of the Department. Further, the Contractor shall <br />incorporate the provisions of this Agreement into any lease arrangement <br />and shall not enter into any lease arrangement without the prior <br />concurrence of the .Department. Any lease approved by the Department <br />shall be subject to the conditions or limitations governing the lease as set <br />forth by the FTA and the Department. If the Contractor leases any <br />Project asset to another party, the Contractor agrees to retain ownership <br />of the leased asset, and assure that the Lessee will use the Project <br />asset to provide mass transportation service, either through a "Lease <br />and Supervisory Agreement" between the Contractor and Lessee, or <br />another similar document. The Contractor agrees to provide a copy of <br />any relevant documents. <br />(1) Significant Participation by a Third Party Contractor. Although the <br />Contractor may enter into a third party contract, after obtaining approval <br />from the Department, in which the third party contractor agrees to provide <br />property or services in support of the Project, or even carry out Project <br />activities normally performed by the Contractor, the Contractor agrees that it, <br />Updated 07/26/10 <br />