Capital Asset Clause Samples
The 'Capital Asset' clause defines what constitutes a capital asset within the context of the agreement. Typically, this clause specifies that capital assets are significant, long-term items such as property, equipment, or investments that are expected to provide value over multiple years. It may outline criteria like minimum value thresholds or expected useful life to distinguish capital assets from regular inventory or consumables. The core function of this clause is to ensure clarity in financial reporting and asset management by clearly identifying which assets are subject to special accounting or contractual treatment.
Capital Asset. The term ‘‘capital asset’’ includes equipment, rolling stock, in- frastructure, and facilities for use in public transportation and owned or leased by a recip- ient or subrecipient of Federal financial as- sistance under this chapter.
Capital Asset. If the Project includes the purchase of a capital asset, Grantee may not sell, transfer, or otherwise dispose of any capital asset paid for with Grant Funds for a period of five (5) years after the Effective Date of this Grant without prior written consent of the Agency.
Capital Asset. Replacement Work under Audit Inspections Maintenance Contractor shall diligently perform and complete all Capital
(a) Prior to the expiration of the Maintenance Term, as extended by the issuance of Maintenance NTP2 or Maintenance NTP3, as applicable; or
(b) If the CMA is terminated for any reason prior to the expiration of the Maintenance Term, within 90 days after the effective date of termination. If Maintenance Contractor, despite diligent efforts, is unable to complete such Capital Asset Replacement Work prior to such period or TxDOT elects, at its sole discretion, to perform such Capital Assert Replacement Work, then in lieu of Maintenance Contractor’s completion of such Capital Asset Replacement Work, Maintenance Contractor shall reimburse TxDOT, within ten days of delivery of an invoice therefor, for TxDOT’s Recoverable Costs of completing such Capital Asset Replacement Work. In lieu of reimbursement, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance Contractor under this CMA.
Capital Asset. Replacement Work under Audit Inspections Maintenance Contractor shall diligently perform and complete all Capital Asset Replacement Work required to be performed and completed based on the required adjustments and changes to the Capital Asset Replacement Work Submittal resulting from the Audit Inspections. Maintenance Contractor shall complete all such Capital Asset Replacement Work:
(a) Prior to the expiration of the Maintenance Term, as extended by the issuance of Maintenance NTP2 or Maintenance NTP3, as applicable; or
(b) If the Capital Maintenance Agreement is terminated for any reason prior to the expiration of the Maintenance Term, within 90 days after the effective date of termination. If Maintenance Contractor, despite diligent efforts, is unable to complete such Capital Asset Replacement Work prior to such period or TxDOT elects, at its sole discretion, to perform such Capital Assert Replacement Work, then in lieu of Maintenance Contractor’s completion of such Capital Asset Replacement Work, Maintenance Contractor shall reimburse TxDOT, within ten days of delivery of an invoice therefor, for TxDOT’s Recoverable Costs of completing such Capital Asset Replacement Work. In lieu of reimbursement, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance Contractor under this Capital Maintenance Agreement.