Common use of Charter Service Agreement Clause in Contracts

Charter Service Agreement. (1) A recipient or subrecipient must enter into a Charter Service Agreement in order to receive FTA funds for equipment or facilities. The terms of the Charter Service Agreement are as follows: “The recipient/subrecipient agrees that it, and each of its subrecipients, and third party contractors at any level who use FTA-funded vehicles, may provide charter service using equipment or facilities acquired with Federal assistance authorized under the Federal Transit Laws only in compliance with the regulations set out in 00 XXX 000, the terms and conditions of which are incorporated herein by reference.” (2) The Charter Service Agreement is contained in the Certifications and Assurances published annually by FTA for applicants for Federal financial assistance, which each direct recipient submits electronically to FTA and which Iowa subrecipients sign as part of the annual Consolidated Transit Funding Application. Once a recipient or subrecipient receives federal funds, the Certifications and Assurances become part of its Grant Agreement or Joint Participation Agreement for Federal financial assistance.