2018-203 OPT - Triangle J transportation demand grant

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The Recipient understands and agrees that the State Government retains a State interest in any real property, equipment, and supplies financed with State assistance (Project property) until, and to the extent, that the State Government relinquishes its State interest in that Project property. With respect to any Project property financed with State assistance under this Agreement, the Recipient agrees to comply with the following provisions of this Agreement: a. Use of Project Property. The Recipient agrees to use Project property for appropriate Project purposes (which may include joint development purposes that generate program income, both during and after the award period and used to support public transportation activities) for the duration of the useful life of that property, as required by TJCOG. Should the Recipient unreasonably delay or fail to use Project property during the useful life of that property, the Recipient agrees that it may be required to return the entire amount of the State assistance expended on that property. The Recipient further agrees to notify TJCOG immediately when any Project property is withdrawn from Project use or when any Project property is used in a manner substantially different from the representations the Recipient has made in its Application or in the Project Description for this Agreement for the Project. b. General. The Recipient agrees to comply with the property management standards of 49 C.F.R. §§ 18.31 through 18.33, including any amendments thereto, and with other applicable Federal and State regulations and directives. Any exception to the requirements of 49 C.F.R. §§ 18.31 through 18.33 requires the express approval of TJCOG in writing. c. Records. The Recipient agrees to keep satisfactory records pertaining to the use of Project property, and submit to TJCOG upon request such information as may be required to assure compliance with this Section 14 of this Agreement. d. Encumbrance of Project Property. The Recipient agrees to maintain satisfactory continuing control of Project property as follows: (1) Written Transactions. The Recipient agrees that it will not execute any transfer of title, lease, lien, pledge, mortgage, encumbrance, third party contract, subagreement, grant anticipation note, alienation, innovative finance arrangement (such as a cross border lease, leveraged lease, or otherwise), or any other obligation pertaining to Project property, that in any way would affect the continuing State interest in that Project property. (2) Oral Transactions. The Recipient agrees that it will not obligate itself in any manner to any third party with respect to Project property. (3) Other Actions. The Recipient agrees that it will not take any action adversely affecting the State interest in or impair the Recipient's continuing control of the use of Project property. e. Insurance Proceeds. If the Recipient receives insurance proceeds as a result of damage or destruction to the Project property, the Recipient 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 TJCOG an amount equal to the remaining interest in the damaged or destroyed Project property. f. Misused or Damaged Project Property. If any damage to Project property results from abuse or misuse occurring with the Recipient's knowledge and consent, the Recipient agrees to restore the Project property to its original condition or refund the value of the State interest in that property, as TJCOG may require. g. Responsibilities after Project Closeout. The Recipient agrees that Project closeout by TJCOG will not change the Recipient's Project property management responsibilities as stated in Section 14 of this Agreement, and as may be set forth in subsequent Federal and State laws, regulations, and directives. Section 1S. Insurance. The Recipient shall be responsible for protecting the State financial interests in all items purchased under this Agreement throughout the useful life of the Project property. Page 13 of 18