2015-439 OPT - FY2016 5311 Nonurbanized area public transportation grant

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casualty„ or natural disaster, the fail, market value shall be calculated oil the basis of the condition of that equipment Or supplies immediately before the fire, casualty, or natural disaster, or the arnount of insurance coverage, whichever is greater. 2. Real Property, The Contractor agrees that the fair market Value of real property financed under the Project shall be determined by FTA either on the basis of competent appraisal based on an appropriate date approved by FTA, as provided by 49 C.F.R. Part 24, by straight line depreciation of improvernents to real property coupled with the value of the land as determined by FTA on the basis of appraisal, or other Federal law or regulations that may be applicable, 2. Exceptional CirCUrnstances. The Contractor agrees that the Department may require the use of another rnethod to determine the fair market value of Project property. In unusual circumstances, the Contractor may request that another reasonable valuation, method be used including, but not limited to, accelerated depreciation, comparable sales, or established market values. In determining whether to approve such a request, the Department may consider any action taken, omission made, or unfortunate occurrence suffered by the Contractor with respect to the preservation of Project property withdrawn from appropriate use. (c) Financial Obligations to the Federal/State Government, The Contractor agrees to remit to the Department the Federal and State interest in the fair market valLfe of any Project property prematurely withdrawn from appropriate use. In turn, the Department shall be responsible to remit the Federal interest to the FTA. In the case of fire, casualty, or natural disaster, the Contractor may fulfill its obligations to remit the Federal and State interest by either: 1. Investing an arnount equal to the remaining Federal and State interest in like -kind property that is eligible for assistance within, the scope of the Project that provided Federal/State assistance for the Project property prematurely withdrawn frorn use; or 2. lRetUrning to the Department an amount equal to the remaining Federal and State interest in the withdrawn Project property, j, Insurance Proceeds, If the Contractor receives insurance proceeds as a result of damage or destruction to the Project property, the Contractor agrees to: (1) Apply those insurance proceeds to the cost of replacing the damaged or destroyed Project property taken Out of service, or (2) Return to the Department all amount equal to the remaining Federal and State interest in the clarnaged or destroyed Project property. k. Transportation - Hazardous Matei1als, The Contractor agrees to comply with applicable requirements of U.S. Pipeline and Hazardous Materials Safety Administration regulations, "'Shippers - General Requirements for Shipments and Packaging," 49 C.F.R. Part 173, in connection with the transportation of any hazardous materials, L Misused or Damage I Pro ect Pro ert , If any darnage to Project property resulls from abuse or misuse Occurring with, the Contractor 's knowledge and consent, the Contractor agrees to restore the Project property to its original condition or refund the value of the Federal and State interest in that property, as the Department may require. M. Responsibilities after Project Closeout The Contractor agrees that Project closeOLlt by the Updated 9/17J1 0 Page 24 of' 3,5