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386 <br /> <br /> C. Manage, operate and maintain the system, including this project if <br /> less than the whole of said system, continuously in an efficient and <br /> economical manner. <br /> D. Make the services of said system available within its capacity to <br /> all persons in Grantee's service area without discrimination as to race, <br /> color, religion, sex, national origin, age, marital status, or physical <br /> or mental handicap (possess capacity to enter into legal contract for <br /> services) at reasonable charges, including assessments, taxes, or fees in <br /> accordance~wihh a schedule of such charges, whether for one or more classes <br /> of service, adopted by resolution date , 19 , as <br /> may be modified from time to time by Grantee. The initial rate schedule <br /> must be approved by Grantor. Thereafter, Grantee may make such modifications <br /> to the rate system as long as the rate schedule remains reasonable and <br /> nondiscriminatory. <br /> E. Adjust its operating costs and service charges from time to time <br /> to provide for adequate operation and maintenance, emergency repair reserves, <br /> obsolescence reserves, debt service and debt service reserves. <br /> F. Expand its system from time to time to meet reasonably anticipated <br /> growth or service requirements in the area within its jurisdiction. <br /> G. Provide Grantor with such periodic reports as it may require and <br /> permit periodic inspection of its operations by a representative of the <br /> Grantor. <br /> H. To execute Form FmHA 400-1, "Equal Opportunity Agreement," and to <br /> execute Form FmHA 400-4. "Nondiscrimination Agreement," and to execute any <br />..other agreements required by Grantor which Grantee is legally authorized to <br /> execute. If any such form has been executed by Grantee as a result of a <br /> loan being made to Grantee by Grantor contemporaneously with the making of <br /> this grant, another form of the same type need not be executed in connection <br /> with this grant. <br /> I. Upon any default under its representations or agreements set forth <br /> in this instrument, Grantee, at the option and demand of Grantor, will <br /> repay to Grantor forthwith the original principal amount of the grant <br /> stated hereinabove, with the interest at the rate of 5 percentum per annum <br /> from the date of the default. Default by the Grantee will constitute <br /> termination of the grant thereby causing cancellation of Federal assistance <br /> under the grant. The provisions of this Grant Agreement may be enforced <br /> by Grantor, at its option and without regard to prior waivers by it of <br /> previous defaults of Grantee, by judicial proceedings to require specific <br /> performance of the terms of this Grant Agreement or by such other proceedings <br /> in law or equity, in either Federal or State courts, as may be deemed <br /> necessary by Grantor to assure compliance with the provisions of this Grant <br /> Agreement and the laws and regulations under which this grant is made. <br /> J. Return immediately to Grantor, as required by the regulations of <br /> Grantor, any grant funds actually advanced and not needed by Grantee for <br /> approved purposes. <br /> K. Use the real property including land, land improvements, structures, <br /> and appurtenances thereto, for authorized purposes of the grant as long as <br /> needed. <br /> 1. Title to real property shall vest in the recipient subject to <br /> the condition that the Grantee shall use the real property for the <br /> authorized purpose of the original grant as long as needed. <br /> 2. The Grantee shall obtain approval by the Grantor agency for the <br /> use of the real property in other projects when the Grantee determines <br /> that the property is no longer needed for the original grant purposes. <br /> Use in other projects shall be limited to those under other Federal <br /> grant programs or programs that have purposes consistent with those <br /> authorized for support by the Grantor. <br /> 3. When the real property is no longer needed as provided in i and <br /> 2 above, the Grantee shall request disposition instructions from the <br /> Grantor agency or its successor Federal agency. The Grantor agency <br /> shall observe the following rules in the disposition instructions: <br /> (a) The Grantee may be permitted to retain title after it <br /> compensates the Federal Government in an amount computed by <br /> applying the Federal percentage of participation in the cost of <br /> the original project to the fair market value of the property. <br /> (b) The Grantee may be directed to sell the property under <br /> guidelines provided by the Grantor agency and pay the Federal <br /> Government an amount computed by applying the Federal percentage <br /> of participation in the cost of the original project to the <br /> <br /> <br />