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(b) SUBRECIPIENT shall: (1) prior to exercising any right under this Agreement, furnish <br />properly executed certificates of insurance and additional insured endorsement to the CITY which shall clearly <br />evidence all coverages required above; (2) provide that such insurance shall not be materially changed or <br />terminated except on 30 days prior written notice to the CITY; (3) maintain such insurance for the period covered <br />by this Agreement; and (4) replace such certificates for policies expiring prior to the expiration of this Agreement <br />2. Automobile Liability Coverage SUBRECIPIENT shall also obtain and maintain, during the <br />effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit unless <br />reduced by CITY, which applies to both owned/leased and non -owned automobiles used by SUBRECIPIENT <br />employees or participants in performance of this Agreement, or, in the event that SUBRECIPIENT will not utilize <br />such owned/leased automobiles but intends to require employees, participants or other agents to utilize their own <br />automobiles in the performance of this Agreement, SUBRECIPIENT shall secure and maintain on file from all <br />such employees, participants, or agents as self- certification of automobile insurance coverage. Governmental <br />entities may provide proof of self- insurance. <br />3. Workers' Compensation. If SUBRECIPIENT is an "employer", as set forth in California Labor <br />Code Section 3300 et seq.; or utilizes participants as "employees," as set forth in California Labor Code Section <br />3350 et seq., SUBRECIPIENT shall obtain and keep in force during the tern of this Agreement full Workers' <br />Compensation insurance coverage for injuries suffered by participants. Said insurance policy shall guarantee <br />CITY at least thirty (30) days written notice of cancellation or modification. <br />4. Equipment Coverage: SUBRECIPIENT shall purchase a policy or policies of insurance covering <br />loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in accordance with this <br />Agreement. Said insurance shall be in the amount of the full replacement value thereof, providing protection <br />against the classification of fire, extended coverage, vandalism, malicious mischief, theft, and special extended <br />perils. Governmental entities may substitute a certificate of self - insurance. <br />5. Proof of Insurance. Certificates and endorsements must be submitted and approved by CITY <br />prior to any work under this Agreement. SUBRECIPIENT understands that CITY will make no payments under <br />this Agreement until the required certificates and endorsements have been approved by CITY. <br />XI. REVERSION OF ASSETS <br />A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any CDBG funds on <br />hand at the time of the expiration of this Agreement as well as any accounts receivable attributable to the use of <br />CDBG funds. [24 CFR 570.503(b)(7)] <br />B. 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 objectives stated <br />in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for such longer period of time as <br />determined to be appropriate by CITY; or <br />2. if not used in accordance with subparagraph 1 above, SUBRECIPIENT shall pay to CITY <br />an amount equal to the current fair market value of the property less any portion of the value attributable to the <br />expenditure of non -CDBG funds for acquisition of, or improvement to, the property. Such payment is program <br />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 in <br />accordance with this Agreement and all applicable regulations is no longer needed for said program, disposition of <br />said equipment will be made as follows: <br />11 <br />25C -13 <br />