R2001-90 AUTHORIZING THE FILING AND EXECUTION OF CONTRACT

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. � The Grantee also agrees that the Government may direct the disposition of equipment financed with Federal and/or state assistance funds made available under this Agreement, as set forth by 49 CFR 18.31 and 18.32. D. Withdrawn Property. If any Project Asset(s) is not used in public or specialized transportation service for the duration of their useful life as determined by the Department, whether by planned withdrawal, misuse or casualty loss, the Grantee agrees to notify the Department within 30 calendar days. (1) Federal and/or State Interest in Property. Unless otherwise approved by the Government, the Grantee agrees to remit to the Government the Government interest in the fair market value, if any, of the Project Asset(s) whose aggregate value exceeds $5,000. The amount of that interest shall be determined on the basis of the ratio of the assistance awarded by the Government for the Project to the actual cost of the Project. (2) Fair Market Value. The following requirements apply to the calculation of fair market value. a) Equipment and Supplies. Unless otherwise approved in writing by the Department, the fair market value of equipment and supplies will be the value of that property at the time immediately before the occurrence that prompted the withdrawal or transfer of the equipment or supplies from transit use. The fair market value shall be calculated by the greater of the appraised value or on a straight line depreciation of the equipment or supplies, based on a useful life approved by the Department irrespective of the reason for withdrawal of equipment or supplies from transit use. The fair market value of equipment or supplies lost or damaged by casualty or fire will be calculated on the basis of the condition of the equipment or supplies immediately before the casualty or fire, irrespective of the extent of insurance coverage. The fair market value of the Project Asset(s) transferred under this agreement is attached as Exhibit E. b) Exceptional Circumstances. The Government, however, reserves the right to require another method of valuation to be used if determined to be in the best interest of the Government. In unusual circumstances, the Grantee may request that another reasonable method of determining fair market value be used, including but not limited to accelerated depreciation, comparable sales, or estimated market values. In determining whether to approve an alternate method, the Government may consider any action taken, omission made, or unfortunate occurrence suffered by the Grantee with respect to the preservation or conservation of the value of the real property, equipment, or supplies that,for any reason,have been withdrawn from service. E. Misused or Damaged Property. If any damage to Project Asset(s) results from abuse or misuse that has taken place with the Grantee's knowledge and consent,the Grantee agrees that the Government may require the Grantee to restore that Project Asset(s) to its original condition or refund the fair market value of the Government interest in the damaged property. F. Obligations After Project Close-out. A Grantee that is a govemmental entity agrees that project close-out will Iter its ro ert mana ement obli ations set forth in this Section and 49 CFR 18.31 and 18.32. � not a p p y 9 9 Pro'ect Pro'ect Asset s &Grant of Securit Interest. G. Title to 1 1 ( ) (1) Title: Title to Project Asset(s) shall be transferred by DONEE, at its expense, to the name of the Grantee, subject to the restrictions on the use and disposition of the Project Asset(s) as set forth herein. (2) Security Interest for Paratransit Rolling Stock: A security interest shall continue to be maintained by the State of Illinois. Grantee hereby grants to the Department or acknowledges, a security interest in the Project Asset(s). Grantee, pursuant to 625 ILCS 5/3-203, shall name the State of Illinois as lienholder on the space provided therefore on the Certificate of Title or on a separate form the Illinois Secretary of State prescribes,and shall state the following information in the space provided: Asset Transfer Agreement page 9