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maintenance, repair, and protection of assets under this Contract so as to assure their full availability <br />and usefulness. In the event Contractor is indemnified, reimbursed, or otherwise compensated for <br />any loss of, destruction of, or damage to the assets provided under this Contract, Contractor shall use <br />the proceeds to repair or replace those assets. <br />Section 12.24 Bankruptcy. In the event of bankruptcy, Contractor shall sever Department property, <br />equipment, and supplies in possession of Contractor from the bankruptcy, and title shall revert to <br />Department. <br />Section 12.25 Title to Property. At the conclusion of the contractual relationship between the <br />Department and the Contractor, for any reason, title to any remaining equipment and supplies <br />purchased with funds under this Contract reverts to Department. Title may be transfened to any <br />other party designated by Department. The Department may, at its option and to the extent allowed <br />by law, transfer the reversionary interest to such property to Contractor. <br />Section 12.26 Property Acquisitions. Department funds may not be used to purchase buildings or <br />real property. Any costs related to the initial acquisition of the buildings or real property aze not <br />-allowable. <br />Section 12.27 Disposition of Property. Contractor shall follow the procedures in the American <br />Hospital Association's (AHA's) "Estimated Useful Lives of Depreciable Hospital Assets" in <br />disposing, at any time during or after the Contract term, of equipment or controlled assets purchased <br />with the Department funds, except when federal or state statutory requirements supersedes or when <br />the equipment requires licensure or registration by the state, or when the acquisition price of the <br />equipment or controlled asset is equal to or greater than $10,000. All other equipment and controlled <br />assets not listed in the AHA reference (other than equipment that requires licensure or registration or <br />that has an acquisition cost equal to or greater than $10,000) shall be controlled by the requirements <br />of UGMS. If, prior to the end of the useful life, any item of equipment is no longer needed to <br />perform services under this Contract, or becomes inoperable, or if the equipment requires licensure or <br />registration or had an acquisition price equal to or greater than $10,000, Contractor shall request <br />disposition approval and instructions in writing from the Division Contract Management Unit <br />assigned to the Program Attachment. After an item reaches the end of its useful life, Contractor must <br />.ensure that disposition of any equipment is in accordance with Generally Accepted Accounting <br />Principles, and any applicable federal guidance. <br />Section 12.28 Closeout of EquipmenL At the end of the term of a Program Attachment that has no <br />additional renewals or that will not be renewed (Closeout), Contractor shall submit to the Division <br />Contract Management Unit assigned to the Program Attachment, an inventory of property purchased <br />with Department funds and request disposition instructions for such property. All propeRy purchased <br />with Department funds shall be secured by the Contractor at the time of Closeout and shall be <br />returned to the Department as required by the Department's disposition instructions or at the request <br />of the Depar[ment at the Contractor's expense. <br />Section 12.29 Assets as Collateral Prohibited. Contractors on a cost reimbursement payment <br />method shall not encumber property purchased with Department funds without prior written approval <br />from the Department. <br />General Provisions (Core Subrecipient 2009) 6/5/08 Page 24 of 38 <br />