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2. Automobile LiabilityCoverage. SUBRECIP1,ENT shall also obtain and maintain, during <br />the effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit <br />unless reduced by CITY; which applies to both owned/leased and non -owned automobiles used by <br />SUBRECIPIENT employees or participants in performance of this Agreement, or, in the event that <br />SUBRECIPIENT will not utilize such owned/leased automobiles but intends to require employees, <br />participants or other agents to utilize their own automobiles in the performance of this Agreement, <br />SUBRECIPIENT shall secure and maintain on file from all such employees; participants, or agents as <br />self -certification of automobile insurance coverage. Govemniental entities ,may provide proof of self- <br />insurance. <br />3. Workers' Compensation. If SUBRECIP)ENT is an "employer", as set forth in California <br />Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in California Labor <br />Code Section 3350 et seq„ SUB"CIPIENT shall obtain and keep in force during the term of this <br />Agreement full Workers' Compensation insurance Coverage for injuries suffered by participants. Said <br />insurance policy shall guarantee CITY at least thirty (30) days written notice of cancellation or <br />modification. <br />4, equipment Coverage, SUBRECIPIENT shall purchase a policy or policies of insurance <br />covering loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in <br />accordance with this Agreement. Said insurance shall be in the amount of the full replacement value <br />thereof, providing protection against the classification of fire, extended coverage, vandalism, malicious <br />mischief,, theft, and special extended perils. Governmental entities may substitute a certificate of self- <br />insurance, <br />5. Proof of fiisuranee. Certificates and endorsements must be submitted and approved by <br />CITY pi orto any work under this Agreement, SUBRECIPIENT understands that CITY will make no <br />payments under this Agreement until the required certificates and endorsements have been approved by <br />CITY. <br />XI, REVERSIONOF ASSETS <br />A. Upon -the expiration of this Agreement, SUBRECIPIENT shall transfer to MY any CDBG <br />funds on hand at the time of the expiration of this Agreement as well as any accounts receivable attributable <br />to the use of CDB(ifinds, [24 CFR570,503(b)(7)1 <br />]3. Any real property under SUBRECIPIENT's control that was acquired or improved in whole or in, <br />part with CDBG funds in excess of $25,000.00 must either be; <br />1. Used, where CITY has given written approval, to meet one of the national <br />objectives stated in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for such longer <br />period oftime as determined to be appropriate by CITY; or <br />2. If not used in accordance with subparagraph I above, SUBRECIPIENT shall pay to <br />CITY an amount equal to the current fair market value of the property less any portion of the value <br />attributable to the expenditure of non-CDBG funds for acquisition of, or improvement to, the property. Such <br />payment is program income to CITY. <br />C. Subject to the obligations set forth herein, title to equipment acquired under the terms of this <br />Agreement will vest upon acquisition in SUBRECIPIENT, When said equipment which has been acquired <br />in accordance with this Agreement and all applicable regulations is no longer needed for said program, <br />disposition of said equipment will be made as follows: <br />12 <br />