Common use of Care and Use Clause in Contracts

Care and Use. The City shall use the Equipment in a careful and proper manner for its governmental purposes, in compliance with all applicable laws and regulations, and, at its sole cost and expense, shall service, repair and maintain the Equipment so as to keep the Equipment in good condition, repair, appearance and working order for the purposes intended, ordinary wear and tear excepted, and shall replace any part of the Equipment as may from time to time become damaged or destroyed, lost or stolen. In addition, the City agrees to comply in all respects with all applicable laws, regulations and rulings of any legislative, executive, administrative, or judicial body, including, without limitation, all anti-money laundering laws and regulations; provided that the City may contest in good faith the validity or application of any such law, regulation or ruling in any reasonable manner that does not, in the opinion of Lender, adversely affect the interest of Lender in and to the Equipment or its interest or rights under this Contract. However, the City is not obligated to renew, repair or replace any inadequate, obsolete, unsuitable, undesirable or unnecessary Equipment. Notwithstanding any provision herein to the contrary, any and all additions to or replacements of the Equipment and all parts thereof constitute accessions to the Equipment and are subject to all the terms and conditions of this Contract and are included in the term “Equipment” as used in this Contract.