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<br />Subsection 2g of this Agreement, regardless of assignment of work to be completed under this <br />Project or lease of Project assets to a third party, it is the Contractor's primary responsibility to <br />comply with State requirements of this Agreement and assure the compliance of any third party <br />contractors. <br />(b) Lease of Vehicles. The lease of vehicles acquired with financial <br />assistance authorized for 49 U.S.C. 5311 to any third party is contingent upon approval of the <br />Department. It is allowable to lease vehicles to another Community Transportation System <br />providing general public service in the State of North Carolina, upon approval of the <br />Department. It is also allowable for vehicles to be leased to a third party operator or <br />transportation management company that operates the transit service within acounty/region <br />-under contract to the Contractor, upon approval of the Department. The Contractor agrees to <br />use the vehicle lease agreement provided by the Department when vehicles are leased, even if <br />on a short-term basis, to another Community Transportation System or a management <br />company. The Contractor agrees to obtain written approval from the Department before the <br />lease. is executed and forward a copy of the signed, executed lease agreement to the <br />Department. The Contractor, as a Community Transportation System, shall not lease vehicles <br />to human service agencies, county agencies/government, community agencies or school <br />systems. The Contractor agrees not to loan vehicle(s) to other agencies/individuals for short- <br />term use, even during hours that the transportation system is not providing service, as the <br />vehicle(s) will generally be used to provide service that is "closed-door," i.e., not open to the <br />general public. <br />h. Disposition of Proiect Property. Wth prior Department approval, the <br />Contractor may sell, transfer, or lease Project property and use the proceeds to reduce the <br />gross project cost of other eligible capital public transportation projects to the extent permitted <br />by 49 U.S.C. § 5334(g)(4). The Contractor also agrees that the Department shall determine <br />"useful life" for all Project property and that the Contractor will use Project property continuously <br />07-SC-056 Page 43 of 59 <br />Orange County <br />