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Federal and State regulations and directives . Any exception to the requirements of 49 C . F . R. <br /> § § 18 . 31 through 18 . 33 requires the express approval of TJCOG in writing. <br /> c . Records . The Recipient agrees to keep satisfactory records pertaining to the use of Project <br /> property, and submit to TJCOG upon request such information as may be required to assure <br /> compliance with this Section 14 of this Agreement. <br /> d . Encumbrance of Project Property. The Recipient agrees to maintain satisfactory continuing <br /> control of Project property as follows : ( 1 ) Written Transactions . The Recipient agrees that it <br /> will not execute any transfer of title , lease, lien, pledge, mortgage , encumbrance, third party <br /> contract, subagreement, grant anticipation note , alienation, innovative finance arrangement <br /> (such as a cross border lease, leveraged lease , or otherwise) , or any other obligation <br /> pertaining to Project property, that in any way would affect the continuing State interest in <br /> that Project property. ( 2 ) Oral Transactions . The Recipient agrees that it will not obligate <br /> itself in any manner to any third party with respect to Project property. ( 3 ) Other Actions , <br /> The Recipient agrees that it will not take any action adversely affecting the State interest in <br /> or impair the Recipient ' s continuing control of the use of Project property. <br /> e . Insurance Proceeds . If the Recipient receives insurance proceeds as a result of damage or <br /> destruction to the Project property, the Recipient agrees to : ( 1 ) Apply those insurance <br /> proceeds to the cost- of replacing the damaged or destroyed Project property taken out . of <br /> service, or ( 2 ) Return to TJCOG an amount equal to the remaining interest in the damaged or <br /> destroyed Project property. <br /> f. Misused or Damaged Project Property. If any damage to Project property results from abuse <br /> or misuse occurring with the Recipient ' s knowledge and consent, the Recipient agrees to <br /> restore the Project property to its original condition or refund the value of the State interest <br /> in that property, as TJCOG may require . <br /> g. Responsibilities after Project Closeout . The Recipient agrees that Project closeout by TJCOG <br /> will not change the Recipient' s Project property management responsibilities as stated in <br /> Section 14 of this Agreement, and as may be set forth in subsequent Federal and State laws, <br /> regulations , and directives . <br /> Section 1S . Insurance . <br /> The Recipient shall be responsible for protecting the State financial interests in all items purchased <br /> under this Agreement throughout the useful life of the Project property. <br /> Section 16 . Employee Protections . <br /> a . Activities Not Involving Construction . The Recipient agrees to comply, and assures the <br /> complianice of each third party contractor, with the employee protection requirements for <br /> nonconstruction employees of the Contract Work Hours and Safety Standards Act, as <br /> amended, 40 U . S . C . § § 3701 et seq ., in particular the wage and hour requirements of Section <br /> 102 of thatAct at 40 U . S . C . § 3702 , and with U . S . DOL regulations, " Labor Standards Provisions <br /> Applicable to Contracts Governing Federally Financed and Assisted Construction (also Labor <br /> Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work <br /> Hours and Safety Standards Act) , " 29 C . F . R. Part S . <br /> b . Activities Involving Commerce . The Recipient agrees that the provisions of the Fair Labor <br /> Standards Act, 29 U . S . C . § § 201 et seq. , apply to employees performing Project work involving <br /> commerce . <br /> Section 17 . Reserved. <br /> Section 18 . Energy Conservation . <br /> Page 13 of 18 <br />