Common use of Duration of Obligation Clause in Contracts

Duration of Obligation. (1) In the case of Federal financial assistance ex- tended in the form of real property or to provide real property or structures on the property, the assurance will ob- ligate the recipient or, in the case of a subsequent transfer, the transferee, for the period during which the real prop- erty or structures are used for the pur- pose for which Federal financial assist- ance is extended or for another purpose involving the provision of similar serv- ices or benefits. (2) In the case of Federal financial as- sistance extended to provide personal property, the assurance will obligate the recipient for the period during which it retains ownership or posses- sion of the property. (3) In all other cases the assurance will obligate the recipient for the pe- riod during which Federal financial as- sistance is extended.