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6.P. - Page 11 of 13 <br />California Government Code Section 895.2 or otherwise except for liability arising out of the <br />concurrent or sole negligence of the STATE, its officers, agents, or employees. <br />3. The GRANTEE agrees that in the event the STATE is named as codefendant under the <br />provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the <br />STATE of such fact and shall represent the STATE in the legal action unless the STATE <br />undertakes to represent itself as codefendant in such legal action in which event the GRANTEE <br />agrees to pay the STATE's litigation costs, expenses, and reasonable attorney fees. <br />4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE <br />and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, <br />their officers, agents, or employees, an apportionment of liability to pay such judgment shall be <br />made by a court of competent jurisdiction. Neither party shall request a jury apportionment. <br />5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and <br />employees against any and all claims, demands, costs, expenses or liability costs arising out of <br />legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE <br />acknowledges that it is solely responsible for compliance with items to which it has certified. <br />H. Financial Records <br />The GRANTEE shall maintain satisfactory financial accounts, documents, including loan <br />documents, and all other records for the project and to make them available to the STATE for <br />auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, <br />documents and records for five years following project termination or issuance of final payment, <br />whichever is later. <br />2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which <br />fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost <br />of the project in connection with such assistance that is given or used, (c) the amount and nature <br />of that portion of the project cost supplied by other sources, and (d) any other such records that <br />will facilitate an effective audit. <br />3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any <br />books, records or reports pertaining to this contract or matters related thereto during regular <br />office hours. The GRANTEE shall maintain and make available for inspection by the STATE <br />accurate records of all of its costs, disbursements and receipts with respect to its activities under <br />this contract. Such accounts, documents, and records shall be retained by the GRANTEE for at <br />least five years following project termination or issuance of final payment, whichever is later. <br />4. The GRANTEE shall use a generally accepted accounting system. <br />I. Use of Facilities <br />1. The GRANTEE agrees that the GRANTEE shall operate and maintain the property acquired or <br />developed with the GRANT MONIES, for the duration of the Contract Performance Period. <br />2. The GRANTEE agrees that, during the Contract Performance Period, the GRANTEE shall <br />use the property acquired or developed with GRANT MONIES under this contract only for the <br />purposes of this grant and no other use, sale, or other disposition or change of the use of the <br />29 <br />220 <br />