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Page 24 of 40 <br /> f. Title to Vehicles. The Certificate of Title to all vehicles purchased under the <br /> Approved Budget for this Project shall be in the name of the Contractor. The Department's <br /> Public Transportation Division shall be recorded on the Certificate of Title as first lien-holder. In <br /> the event of project termination or breach of contract provisions, the Contractor shall, upon <br /> written notification by the Department, surrender Project equipment and/or transfer the <br /> Certificate(s)of Title for Project equipment to the Department or the Department's designee. <br /> g. Encumbrance of Project Property. The Contractor agrees to maintain <br /> satisfactory continuing control of Project property as follows: <br /> (1) Written Transactions. The Contractor agrees that it will not execute <br /> any transfer of title, lease, lien, pledge, mortgage, encumbrance, third party contract, sub- <br /> agreement, grant anticipation note, alienation, innovative finance arrangement (such as a cross <br /> border lease, leveraged lease, or otherwise), or any other obligation pertaining to Project <br /> property, that in any way would affect the continuing Federal and State interest in that Project <br /> 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 Federal and State interest in or impair the Contractor's continuing control <br /> of the use of Project property. <br /> h. Transfer of Project Property. The Contractor understands and agrees as <br /> follows: <br /> (1) Contractor Request. The Contractor may transfer any Project property <br /> financed with Federal assistance authorized under 49 U.S.C. chapter 53 to a local government <br /> authority to be used for any public purposed with no further obligation to the Federal <br /> Government, provided the transfer is approved by the Federal Transit Administration and <br /> conforms with the requirements of 49 U.S.C. §§ 5334(h)(1)through 5334 (h)(3). <br /> (2) Federal/State Government Direction. The Contractor agrees that the <br /> Federal or State Government may direct the disposition of, and even require the Contractor to <br /> transfer title to any Project property financed with Federal/State assistance under this <br /> Agreement. <br /> (3) Leasing Project Property to Another Party. <br /> (a) General. Prior to entering into any third party contract for leasing <br /> Project property to another party, the Contractor agrees to obtain approval from the Department. <br /> If the Contractor leases any Project property to another party, the Contractor agrees to retain <br /> ownership of the leased Project property, and assure that the lessee will use the Project <br /> property appropriately, through a written lease between the Contractor and lessee. The <br /> Contractor agrees to use the standard lease agreement form provided by the Department and to <br /> provide a copy of the signed, executed lease agreement to the Department. In accordance with <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 Federal and State requirements of this Agreement and assure the compliance of <br /> any third party contractors. <br /> (b) Lease of Vehicles. The lease of vehicles acquired with financial <br /> assistance authorized for 49 U.S.C. 5310 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 a county/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 /> Revised 02/20/13 <br />