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updating the TAM Plan Inventory and any and all other reports the Department <br /> deems necessary . The Subrecipient shall also maintain and make available to the <br /> Department upon its demand all documents , policies , procedures , purchase <br /> orders , bills of sale , internal work orders and similar items that demonstrate the <br /> Subrecipient ' s maintenance of the facility in good operating order and at a high <br /> level of cleanliness , safety and mechanical soundness . <br /> I <br /> e . Incidental Use . The Subrecipient agrees that any incidental use of Project property <br /> will not exceed that permitted under applicable laws , regulations , and directives . <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 Subrecipient . The <br /> Department' s Public Transportation Division shall be recorded on the Certificate of <br /> Title as first lien - holder . In the event of project termination or breach of contract <br /> provisions , the Subrecipient shall , upon written notification by the Department , <br /> surrender Project equipment and /or transfer the Certificate ( s ) of Title for Project <br /> equipment to the Department or the Department ' s designee within 30 days of <br /> request . <br /> g . Encumbrance of Project Property . The Subrecipient agrees to maintain <br /> satisfactory continuing control of Project property as follows : <br /> ( 1 ) Written Transactions . The Subrecipient agrees that it will not execute any <br /> transfer of title , lease , lien , pledge , mortgage , encumbrance , third party <br /> contract , subagreement , grant anticipation note , alienation , innovative <br /> finance arrangement (such as a cross border lease , leveraged lease , or <br /> otherwise ) , or any other obligation pertaining to Project property , that in any <br /> way would affect the continuing Federal and State interest in that Project <br /> property . <br /> ( 2 ) Oral Transactions . The Subrecipient agrees that it will not obligate itself in <br /> any manner to any third party with respect to Project property . <br /> ( 3 ) Other Actions , The Subrecipient agrees that it will not take any action <br /> adversely affecting the Federal and State interest in or impair the <br /> Subrecipient ' s continuing control of the use of Project property . <br /> h . Alternative Use , Transfer , and Disposition of Project Property . The Subrecipient <br /> understands and agrees any alternative uses , transfers , or disposition of project <br /> property must be approved by the Department and done in accordance with <br /> Departmental procedures . <br /> i . Insurance Proceeds . If the Subrecipient receives insurance proceeds as a result <br /> of damage or destruction to the Project property , the Subrecipient agrees to : <br /> ( 1 ) Apply those insurance proceeds to the cost of replacing the damaged or <br /> destroyed Project property taken out of service , or <br /> NCDOT PTD Federal Agreement Page 11 of 23 <br /> Revised 6/28 /2018 <br />