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<br />Generic GO Bond Proceeds 31 Ver – 10/26/2020
<br />Grant Agreement for Construction Grants
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<br />The Public Entity shall not, without the written consent of the State Entity and the Commissioner
<br />of MMB, (a) permit or suffer the use of any of the Real Property or, if applicable, Facility, for any
<br />purpose other than the purposes specified in Section 2.04, (b) remove, demolish or substantially alter
<br />any of the Real Property or, if applicable, Facility, except such alterations as may be required by laws,
<br />ordinances or regulations or such other alterations as may improve such Real Property or, if
<br />applicable, Facility by increasing the value thereof or improving its ability to be used to operate the
<br />Governmental Program thereon or therein, (c) do any act or thing which would unduly impair or
<br />depreciate the value of the Real Property or, if applicable, Facility, (d) abandon the Real Property or,
<br />if applicable, Facility, (e) commit or permit any waste or deterioration of the Real Property or, if
<br />applicable, Facility, (f) remove any fixtures or personal property from the Real Property or, if
<br />applicable, Facility, that was paid for with the proceeds of the G.O. Grant unless the same are
<br />immediately replaced with like property of at least equal value and utility, or (g) commit, suffer or
<br />permit any act to be done in or upon the Real Property or, if applicable, Facility, in violation of any
<br />law, ordinance or regulation.
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<br /> If the Public Entity fails to maintain the Real Property and, if applicable, Facility in accordance
<br />with the provisions contained in this Section, then the State Entity may perform whatever acts and
<br />expend whatever funds that are necessary to so maintain the Real Property and, if applicable, Facility
<br />and the Public Entity irrevocably authorizes and empowers the State Entity to enter upon the Real
<br />Property and, if applicable, Facility, to perform such acts as may to necessary to so maintain the Real
<br />Property and, if applicable, Facility. Any actions taken or funds expended by the State Entity
<br />hereunder shall be at its sole option and discretion, and nothing contained herein, including but not
<br />limited to this Section, shall require the State Entity to take any action, incur any expense, or expend
<br />any funds, and the State Entity shall not be responsible for or liable to the Public Entity or any other
<br />entity for any such acts that are undertaken and performed in good faith and not in a negligent manner.
<br />Any funds expended by the State Entity to perform such acts as may to necessary to so maintain the
<br />Real Property and, if applicable, Facility shall be due and payable on demand by the State Entity and
<br />bear interest from the date of advancement by the State Entity at a rate equal to the lesser of the
<br />maximum interest rate allowed by law or 18% per annum based upon a 365 day year.
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<br />Section 7.04 Records Keeping and Reporting. The Public Entity shall maintain or cause
<br />to be maintained books, records, documents and other evidence pertaining to the costs or expenses
<br />associated with the Project and operation of the Real Property and, if applicable, Facility needed to
<br />comply with the requirements contained in this Agreement, the G.O. Compliance Legislation, the
<br />Commissioner’s Order, and the G.O. Bonding Legislation, and upon request shall allow or cause the
<br />entity which is maintaining such items to allow the State Entity, auditors for the State Entity, the
<br />Legislative Auditor for the State of Minnesota, or the State Auditor for the State of Minnesota, to
<br />inspect, audit, copy, or abstract, all of such items. The Public Entity shall use or cause the entity
<br />which is maintaining such items to use generally accepted accounting principles in the maintenance
<br />of such items, and shall retain or cause to be retained (i) all of such items that relate to the Project for
<br />a period of 6 years from the date that the Project is fully completed and placed into operation, and (ii)
<br />all of such items that relate to the operation of the Real Property and, if applicable, Facility for a
<br />period of 6 years from the date such operation is initiated.
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