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5/OS <br />XI. REVERSION OF ASSETS <br />A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any <br />CDBG funds on hand at the time of the expiration of this Agreement as well as any accounts <br />receivable attributable to the use of CDBG funds. [24 CFR 570.503(b)(8).] <br />B. Any real property under SUBRECIPIENT's control that was acquired or improved <br />in whole or in 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 <br />such longer period of time as determined to be appropriate by CITY; or <br />2. If not used in accordance with subparagraph A above, SUBRECIPIENT <br />shall pay to CITY an amount equal to the current fair market value of the property less any portion <br />of the value attributable to the expenditure of non-CDBG funds for acquisition of, or improvement <br />to, the property. Such payment is program income to CITY. <br />C. Subject to the obligations set forth herein, title to equipment acquired under the <br />terms of this Agreement will vest upon acquisition in SUBRECIPIENT. When said equipment <br />which has been acquired in accordance with this Agreement and all applicable regulations is no <br />longer needed for said program, disposition of said equipment will be made as follows: <br />1. Items of equipment with a current per unit fair market value of less than <br />$5,000.00 may be retained, sold or otherwise disposed of with no further obligation to CITY. <br />2. Items of equipment with a current fair market per unit value of $5,000.00 or <br />more may be retained or sold and CITY shall have the right to an amount calculated by multiplying <br />the current market value or proceeds from the sale by CITY's share of federal funds used to acquire <br />the equipment, in accordance with 24 CFR 85.32(e)(2). <br />D. SUBRECIPIENT hereby agrees, upon the demand of CITY, to execute, <br />acknowledge and deliver, or cause any person or entity who may have any claim to rights hereunder <br />or under any document, instrument or agreement executed in furtherance of the services and <br />activities to be performed hereunder, to execute, acknowledge and deliver, to CITY assignment(s), <br />quit claim deed(s) or such other and further instruments, documents and agreements as may be <br />necessary, in the sole and absolute discretion of CITY, to vest in CITY all of SUBRECIPIENT's <br />right, title and interest (if any it may have) in and to CITY, CDBG or other federal, state and/or <br />local accounts or program funds or allocation of funds to which CITY is or may be entitled, either <br />for its own account or as fiduciary or trustee for others, which were obtained for the purpose of the <br />performance of this Agreement or any previous agreements relating to the same subject matter or <br />activities as this Agreement, together with any instruments, loans, grants or advances by <br />SUBRECIPIENT on behalf of CITY, in furtherance of the activities hereunder or thereof. <br />12 <br />