01 M.R.S. § 001-403-9 - TERMS AND CONDITIONS

By applying for an infrastructure investment grant, the applicant agrees to the following conditions:

1. The grantee will continue to ensure that the infrastructure purchased is maintained in a safe condition and in good repair.

2. DACF has the sole discretion to determine if expenditures are reasonable and prudent, and whether the grantee has complied with these terms and conditions and all applicable laws, rules, and regulations.

3. The State shall have no responsibility for the use, maintenance, or fitness of the infrastructure.

4. The grantee agrees not to assign, transfer, lease or encumber its rights or obligations under the agreement without DACF's prior written consent. The grantee shall indemnify, defend, save and hold the State and its employees harmless from and against any claims, losses, liabilities, costs, expenses, damages, or other obligations of any nature in any way arising out of the use, operation, maintenance, or repair of the infrastructure.

5. The grantee must retain ownership and use the infrastructure for a period consistent with the relevant recovery period for standard farming assets as depicted in Internal Revenue Service (IRS) Publication 225 (Farmer's Tax Guide), Table 7-1, Farm Property Recovery Periods; or the grantee must notify DACF in writing within 30 days of any sale, trade, destruction, or abandonment of infrastructure purchased under the infrastructure investment grant program if such sale, trade, destruction, or abandonment occurs within the relevant recovery period for standard farming assets as depicted in IRS Publication 225 (Farmer's Tax Guide), Table 7-1, Farm Property Recovery Periods.

6. If the infrastructure is sold, traded, abandoned, or destroyed within the relevant recovery period noted in Section 9.5, DACF may seek reimbursement from the grantee for the remaining value of the infrastructure as calculated using generally accepted accounting principles. In deciding whether to seek reimbursement, DACF will consider whether the events leading to the sale, trade, abandonment, or destruction were within the grantee's control and will not penalize grantees for forces beyond their control.

7. The State may inspect any facilities or infrastructure funded through an infrastructure investment grant at any time within the relevant recovery period noted in Section 9.5.

8. All grantees will purchase and maintain insurance to cover the value of the infrastructure from loss during the relevant recovery period noted in Section 9.5.

Notes

01 M.R.S. § 001-403-9