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Article III <br />USE CONTRACTS <br />This Article III and its contents is only needed and only applies if the Public Entity enters into an <br />agr�eement with another party under which such other party will operate any portion of the Real <br />Property, and if applicable, Facility. For all other circumstances this Article III and it contents <br />is not needed and should be i�nored and treated as if were left blank, and anv r'eference to this <br />Article III, its contents, and the term Use Contract in this A�eement shall be i�nored and <br />treated as i the references did not exist. <br />Section 3.01 General Provisions. If the Public Entity has statutory authority to enter <br />into a Use Contract, then it may enter Use Contracts for various portions of the Real Property <br />and, if applicable, Facility; provided that each and every Use Contract that the Public Entity <br />enters into must comply with the following requirements: <br />A. The purpose for which it was entered into must be to operate the State Program. <br />B. It must contain a provision setting forth the statutory authority under which the <br />Public Entity is entering into such contract, and must comply with the substantive and <br />procedural provisions of such statute. <br />C. It must contain a provision stating that it is being entered into in order for the <br />Counterparty to operate the State Program and must describe such program. <br />D. It must contain a provision that will provide for oversight by the Public Entity. <br />Such oversight may be accomplished by way of a provision that will require the <br />Counterparty to provide to the Public Entity, (i) an initial program evaluation report for the <br />first fiscal year that the Counterparty will operate the State Program, (ii) program budgets <br />for each succeeding fiscal year showing that forecast program revenues and additional <br />revenues available for the operation of the State Program (from all sources) by the <br />Counterparty will equal or exceed expenses for such operation for each succeeding fiscal <br />year, and (iii) a mechanism under which the Public Entity will annually determine that the <br />Counterparty is using the portion of the Real Property and, if applicable, Facility that is the <br />subj ect of the Use Contract to operate the State Program. <br />E. It must allow for termination by the Public Entity in the event of a default <br />thereunder by the Counterparty, or in the event that the State Program is terminated or <br />changed in a manner that precludes the operation of such program in the portion of the Real <br />Property and, if applicable, Facility that is the subject of the Use Contract. <br />F. It must terminate upon the termination of the statutory authority under which <br />the Public Entity is operating the State Program. <br />G. It must require the Counterparty to pay all costs of operation and maintenance <br />of that portion of the Real Property and, if applicable, Facility that is the subject of the Use <br />Contract, unless the Public Entity is authorized by law to pay such costs and agrees to pay <br />such costs. <br />Generic GO Bond Proceeds 16 Ver — 8/20/08 <br />Grant Agreement for ProgramConstruction Grants (Gnrc GO GA-Prgrm Cnstrctn Grnt) <br />RDGP-08-0029-o-FY09 <br />