Common use of Use & Reversion of Assets Clause in Contracts

Use & Reversion of Assets. In the event Subrecipient ceases to use real or personal property acquired or improved with CDBG funds, one of the following options must occur in accordance with the requirements of 2 CFR 200, as now in effect and as may be amended from time to time, and 24 CFR 570.502, 570.503, and 570.504, unless the City/Grantee approves otherwise in writing: 1. The Subrecipient shall transfer to the City/Grantee all CDBG funds used for the acquisition or improvement of any real or personal property; 2. The Subrecipient shall pay to the City/Grantee a sum equal to the property’s fair market value (at the time that the property ceases to be used in accordance with the Scope of Service), less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of or improvement to the property; or 3. The Subrecipient shall return the real or personal property to the City/Grantee. In the event that some real and/or personal property ceases to be used in accordance with the Scope of Service, while other real and/or personal property continues to be used in accordance with the Scope of Service, Subsection IX.E. only applies to property that ceases to be used in accordance with the Scope of Service.

Use & Reversion of Assets. In the event Subrecipient ceases to use real or personal property acquired or improved with CDBG funds, one of the following options must occur in accordance with the requirements of 2 CFR 200, as now in effect and as may be amended from time to time, and 24 CFR 570.502, 570.503, and 570.504, unless the City/Grantee approves otherwise in writing: 1. The Subrecipient shall transfer to the City/Grantee all CDBG funds used for the acquisition or improvement of any real or personal property;; or 2. The Subrecipient shall pay to the City/Grantee a sum equal to the property’s fair market value (at the time that the property ceases to be used in accordance with the Scope of Service), less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of or improvement to the property; or 3. The Subrecipient shall return the real or personal property to the City/Grantee. In the event that some real and/or personal property ceases to be used in accordance with the Scope of Service, while other real and/or personal property continues to be used in accordance with the Scope of Service, Subsection IX.E. only applies to property that ceases to be used in accordance with the Scope of Service.