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TERMS AND CONDITIONS
<br />A. THE DONEE CERTIFIES THAT:
<br />(1) It is a public agency; or an approved nonprofit organization, exempt from taxation under Section 501 of the Internal Revenue Code of
<br />1954; within the meaning of Section 203(j) of the Federal Property and Administrative Services Act of 1949, as amended.
<br />(2) The property is needed and will be used by the recipient for carrying out for the residents of a given political area one or more public
<br />purposes, or, if an approved nonprofit tax- exempt organization or 8(a) business, the property is needed for and will be used by the
<br />recipient for educational or public health purposes, or for programs for older individuals, or for business purposes. The property is not
<br />acquired for any other use or purpose, or for sale or other distribution; or for permanent use outside the state, except with prior approval
<br />of the State Agency for Surplus Property, hereafter referred to "the SASP.
<br />(3) Funds are available to pay any and all costs and charges incidental to the receipt of surplus property, that the property is not being
<br />acquired for any other use(s) or purpose(s), is not for sale. Fee schedule is available upon request from the California SASP.
<br />(4) Any transaction shall be subject to the nondiscrimination regulations governing the donation of federal surplus personal property issued
<br />under Title VI of the Civil Rights Act of 1964, (41 USC 2000d- 2000d4a), as amended; Section 504 of the Rehabilitation Act of 1973 (29
<br />USC 794), as amended; Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 -1688), as amended; and Section 303 of the Age
<br />Discrimination Act of 1975 (42 USC 6101 - 6107).
<br />(5) If the Donee is designated by the Federal Small Business Administration 8a Program as a socially and economically disadvantaged small
<br />business and the SASP has determined the Donee is eligible to receive federal surplus personal property as a donation, the Donee certifies
<br />that the property acquired is needed and will be used solely for the conduct of the Donee's business enterprise; and the Donee certifies to
<br />A. (3), A. (4), and A. (5) above.
<br />B. The Donee agrees to the following federal conditions:
<br />(1) All items of property, other than items with a unit acquisition cost of $5,000 or more and passenger motor vehicles, regardless of
<br />acquisition cost, shall be placed in use for the purpose(s) for which acquired within one year of receipt, and shall be placed in continuous
<br />use for one year from the date the property was placed in use. In the event the Donee does not so place the property in use, or in
<br />continuous use, the Donee shall immediately notify the SASP and, at the Donee's expense, make the property available for transfer or
<br />other disposal as directed by the SASP.
<br />(2) Special handling or use limitations as are imposed by the Federal General Services Administration (GSA) on any item(s) of property under which the
<br />item(s) are being allocated to the Donee.
<br />(3) In the event the Donee does not so use the property as required by C. (1) and C. (2), above, at the option of the GSA title and right to the
<br />possession of such property shall revert to the United States of America and, upon demand, the Donee shall release such property to such
<br />person as the GSA or its designee shall direct.
<br />C. The Donee agrees to the following conditions applicable to items with a unit acquisition cost of $5,000 or more and passenger motor vehicles,
<br />except vessels of 50 feet or more in length and aircraft, regardless of acquisition cost:
<br />(1) The property shall be placed in use within one year of receipt and shall be used only for the purpose(s) for which acquired and for no other
<br />purpose(s).
<br />(2) There shall be a period of restriction which will expire after such property has been used for the purpose(s) for which acquired for 18
<br />months from the date the property is placed in use, except for such item(s) of major equipment for which the SASP designates a further
<br />period of restriction.
<br />(3) In the event the property is not so used as required by C. (1) and C. (2), above, at the option of the SASP title and right to the possession of
<br />such property shall revert to the State of California, and the Donee shall release such property to such person, as the SASP shall direct.
<br />D. The Donee agrees to the following terms, reservations and restrictions:
<br />(1) From the date the Donee receives the property and throughout the time period(s) imposed by B. or C. above (as applicable) remain in
<br />effect, the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of such property or remove it
<br />permanently for use outside the State of California without the prior approval of the GSA or the SASP. The proceeds from any sale,
<br />trade, lease, loan, bailment, encumbrance, or other disposal of the property, when the GSA or the SASP authorizes such action, shall be
<br />remitted promptly by the Donee to the GSA or the SASP, as applicable. If a Donee takes action in ignoring or disregarding the foregoing
<br />restrictions after the date the Donee receives the property and before expiration of the time periods imposed by C. or D. as applicable at
<br />the option of the GSA or the SASP, the Donee shall pay to the GSA or the SASP any proceeds derived from the disposal, and/or the fair
<br />market or fair rental value of the property at the time of such unauthorized disposal as determined by the GSA or the SASP as applicable.
<br />(2) If at any time from the date the Donee receives the property and throughout the time periods imposed by B. or C. above (as applicable) the
<br />Donee determines that some or all of the property is no longer suitable, usable, or further needed for the purpose(s) for which it was
<br />acquired, the Donee shall promptly notify the SASP and shall, as directed by the SASP, return the property to the SASP, or release the
<br />property to another Donee or another state agency or a department or agency of the United States, or sell or otherwise dispose of the
<br />property. The Donee shall remit the proceeds from any sale promptly to the SASP.
<br />(3) The Donee shall make reports to the SASP which shall state the use, condition and location of the property, and shall report on other
<br />pertinent matters as may be required from time to time by the SASP.
<br />(4) At the option of the SASP, the Donee may abrogate the conditions set forth in B, above, and the terms, reservations and restrictions
<br />pertaining thereto in D by payment of an amount determined by the SASP.
<br />E. The Donee agrees to the following conditions applicable to all items of property:
<br />(1) The property acquired by the Donee is on an "as is," "where is" basis without warranty of any kind.
<br />(2) If the Donee carries insurance against damages to or loss of property because of fire or other hazards, and damage to, loss or destruction
<br />of donated property with unexpired terms, conditions, reservations or restrictions occurs, the SASP will be entitled to reimbursement from
<br />the Donee out of the insurance proceeds in an amount equal to the unamortized portion of the fair value of the lost, damaged or destroyed
<br />property.
<br />F. Terms, conditions, reservations and restrictions set forth in the Conditional Transfer Document executed by the authorized Donee
<br />representative are applicable to the donation of aircraft and vessels of 50 feet or more in length having an acquisition cost of $5,000 or more,
<br />regardless of the purpose for which acquired.
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