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DocuSign Envelope ID:63E81679-OC83-4B6C-B9E4-AFBB81985720 <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 /> (2) Return to the Department an amount equal to the remaining Federal and <br /> State interest in the damaged or destroyed Project property. <br /> j. Misused or Damaged Project Property. If any damage to Project property results <br /> from abuse or misuse occurring with the Subrecipient 's knowledge and consent, <br /> the Subrecipient agrees to restore the Project property to its original condition or <br /> NCDOT PTD Federal Agreement Page 11 of 23 <br /> Revised 12/28/2018 <br />