Section 670-9-3 - TERMS AND CONDITIONS OF APPLICATION/AGREEMENT1. By applying for the Capital Equipment Grant, the applicant agrees to the following conditions: A. The applicant and any associated officer or elected official ensure, and will continue to ensure, that the equipment purchased is maintained in a safe condition, in good repair, stored at a protected site and used for the sole purpose of winter grooming of snowmobile trails that are open to the general public at no cost. B. Landowners and tenants who give permission to use the land have been notified the trails must be open at no cost to the general public for snowmobile use. C. The Bureau has the sole discretion to determine if expenditures are reasonable and prudent, and whether the grantee has complied with the terms of the agreement and all applicable laws, rules and regulations. D. The State shall have no responsibility for the use, maintenance, or fitness of the equipment. The applicant agrees not to assign, transfer, lease or encumber its rights or obligations under the agreement, without the Bureau's prior written consent. The applicant 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 equipment. E. The State may inspect any facilities or equipment used in connection with the agreement at any time. F. Grantee must retain ownership and use the equipment for trail maintenance for periods covering six years for equipment valued at $100,000 or more and four years for equipment valued under $100,000 from the date on the purchase receipt. The grantee must notify the Bureau in writing within 30 days of any sale, trade, destruction or abandonment of equipment purchased under the grant program. G. If a grantee ceases to participate in one of the Bureau's Snowmobile Club or Municipal Trail Grant Programs, or the grantee's organization disbands without forming, or being absorbed into another participating organization, or the equipment is sold, traded, abandoned or destroyed, the grantee must reimburse the Bureau twenty-five percent of the grant for each year, or portion of a year, remaining in the grant period for equipment valued under $100,000 and seventeen percent per year for equipment valued at $100,000 or more. If the grantee otherwise violates the terms of the grant agreement, these rules or other applicable laws, the grantee shall repay the Bureau upon its demand the entire amount granted together with interest thereon at 6% per annum. No new grants will be issued until the grantee repays the grant amount as required by this paragraph. H. If a piece of equipment is replaced within the grant period, the new replacement is not eligible for a grant. However, reimbursement provisions under section G applies to the replacement equipment until the original four or six year grant period expires. I. All Grant recipients will purchase and maintain insurance to cover the value of the equipment from loss by fire during the grant period. 01- 670 C.M.R. ch. 9, § 3