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(1) Written Transactions. The Contractor agrees that it will not execute <br />any transfer of title, lease, lien, pledge, mortgage, encumbrance, third party contract, <br />subagreement, grant anticipation note, alienation, innovative finance arrangement (such as a <br />cross border lease, leveraged lease, or otherwise), or any other obligation pertaining to Project <br />property, that in any way would affect the continuing State interest in that Project property. <br />(2) Oral Transactions. The Contractor agrees that it will not obligate itself <br />in any manner to any third party with respect to Project property. <br />(3) Other Actions. The Contractor agrees that it will not take any action <br />adversely affecting the State interest in or impair the Contractor's continuing control of the use <br />of Project property. <br />e. Insurance Proceeds. If the Contractor receives insurance proceeds as a <br />result of damage or destruction to the Project property, the Contractor agrees to: <br />(1) Apply those insurance proceeds to the cost of replacing the damaged <br />or destroyed Project property taken out of service, or <br />(2) Return to the Department an amount equal to the remaining State <br />interest in the damaged or destroyed Project property. <br />f. Misused or Damaged Project Property. If any damage to Project property <br />results from abuse or misuse occurring with the Contractor's knowledge and consent, the <br />Contractor agrees to restore the Project property to its original condition or refund the value of <br />the State interest in that property, as the Department may require. <br />g. Responsibilities after Proiect Closeout. The Contractor agrees that Project <br />closeout by the Department will not change the Contractor's Project property management <br />responsibilities as stated in Section 14 of this Agreement, and as may be set forth in <br />subsequent Federal and State laws, regulations, and directives, except to the extent the <br />Department determines otherwise in writing. <br />Project 07-US-056 Page 37 of 49 <br />Orange County <br />