REVERSION OF ASSETS Clause Samples
The Reversion of Assets clause defines the process by which assets previously transferred or assigned under an agreement are returned to their original owner upon the occurrence of certain events, such as the termination or expiration of the contract. In practice, this clause may specify the types of assets involved—such as intellectual property, equipment, or confidential materials—and outline the conditions and procedures for their return, including timelines and the required state or condition of the assets. Its core function is to ensure that ownership and control of key assets revert to the rightful party, thereby protecting their interests and preventing unintended retention or misuse by the other party after the agreement ends.
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REVERSION OF ASSETS. A. Upon this agreement’s expiration, the subrecipient shall transfer to the grantee any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds.
B. Any real property under the subrecipients control that was acquired or improved in whole or in part with CDBG funds (including CDBG funds provided to the subrecipient in the form of a loan) in excess of $25,000 is either:
a. used to meet one of the national objectives in 24 CFR 570.208 (formerly 24 CPR 570.901) until five years after expiration of the agreement, or for such longer period of time as determined to be appropriate by the grantee; or
b. if not used in accordance with (a), in which event the subrecipient shall pay to the grantee an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. The payment is program income to the grantee. No payment is required after the period of time specified in (a).
REVERSION OF ASSETS. (a) Upon expiration of the term of this Agreement, or upon any prior termination, Subrecipient shall transfer to City any funds provided hereunder which are on hand at the time of expiration or termination.
(b) In the event City incurs any costs or expenses in enforcing the requirements of this paragraph 15 or in bringing any action to recover the property or amount of any repayment obligation, City shall be entitled to recover its costs and expenses, including reasonable attorney’s fees.
REVERSION OF ASSETS. Upon expiration or termination of the Contract and subject to this Article:
(a) If applicable, Developer shall transfer to the GLO any CDBG-DR funds Developer has in its possession at the time of expiration or termination that are not attributable to work performed on the Project and any accounts receivable attributable to the use of CDBG-DR funds awarded under this Contract; and
(b) If applicable, real property under Developer’s control that was acquired or improved, in whole or in part, with funds in excess of $25,000 under this Contract shall be used to meet one of the CDBG-DR National Objectives pursuant to 24 C.F.R. § 570.208, as identified in the Action Plan, until five (5) years after the expiration of this Contract or such longer period of time as the GLO deems appropriate. If Developer fails to use the CDBG-DR funded real property in a manner that meets a CDBG-DR National Objective for the prescribed period of time, Developer shall pay the GLO an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG-DR funds for acquisition of, or improvement to, the property. Developer may retain real property acquired or improved under this Contract after the expiration of the five-year period or such longer period of time as the GLO deems appropriate.
REVERSION OF ASSETS. The Subrecipient shall transfer to the Grantee any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Any real property that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 must continue to meet the eligibility criteria and shall conform with the “changes in use” restrictions specified in 24 CFR 570.503(b)(8).
REVERSION OF ASSETS. In the event this contract is terminated, due to breach, convenience, or expiration, the Developer agrees to transfer ownership of any real property purchased with HOME funds under this agreement or any prior written agreement, to the City, upon written notification. This clause shall not apply if the project has been completed as contractually agreed, and the applicable affordability period has expired.
REVERSION OF ASSETS. The SUBRECIPIENT shall return to the CITY, upon expiration or termination of this Agreement, all the assets owned or held as a result of this Agreement, including, but not limited to any funds on hand, any accounts receivable attributable to these funds, mortgages, notes, and other collateral and any overpayments due to unearned funds or costs disallowed pursuant to the terms of this Agreement that were disbursed to the SUBRECIPIENT by the CITY. The SUBRECIPIENT shall within 30 days of expiration or termination of this Agreement execute any and all documents as required by the CITY to effectuate the reversion of assets. Any funds not earned, as described and provided for in 2 CFR 200, Subpart E, by the SUBRECIPIENT prior to the expiration or termination of this Agreement shall be retained by the CITY.
REVERSION OF ASSETS. Upon expiration of the Agreement, the SUBRECIPIENT shall transfer to the COUNTY any CDBG funds on hand at the time of expiration, any accounts receivable attributable to the use of CDBG funds, and any non-expendable personal property that was purchased with CDBG funds. Any real property under SUBRECIPIENT control that was acquired or improved in whole or in part with CDBG funds in excess of Twenty-five Thousand Dollars ($25,000) will be covered by the regulations 24 CFR Part 570.503(B)(8).
REVERSION OF ASSETS. The reversion of assets and use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR §570.502 (applicability of uniform administrative requirements), §570.503 (subrecipients), §570.504 (program income), §570.505 (recipients/grantees), and §570.200(j) (faith-based organizations), as applicable. For subrecipients, 24 CFR §570.503 requires:
1. Upon expiration of this Agreement, West Lakes shall transfer to the City any CDBG funds or Program Income on hand at the time of expiration or termination of this Agreement and any accounts receivable attributable to the use of CDBG funds as required by 24 CFR §570.503 (b)(7); and
2. Any real property under West Lakes’s control that was acquired or improved, in whole or in part, with CDBG funds in excess of $25,000 must either:
a) Be used to meet one of the CDBG national objectives in 24 CFR §570.208 until five years after expiration of the Agreement; or
b) if West Lakes fails to use the property in accordance with paragraph (a) above, West Lakes shall pay the City an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non- CDBG funds for the acquisition of, or improvement to, the property. The payment is considered Program Income to the City. West Lakes shall also comply with the property standards in 2 CFR part 200, as modified by 24 CFR §570.502, which excepts 2 CFR §200.311 from the required property standards. Notwithstanding, faith-based organizations must comply with §570.200(j) which requires compliance with §200.311 and §5.109 including the requirements regarding disposition and change in use of real property by a faith-based organization. Disposition of real property by a faith-based organization after its use for an authorized purpose, or any change in use of the property from an authorized purpose, is subject to Government-wide regulations governing real property disposition (2 CFR part 200, subpart D) in addition to the CDBG program specific regulations. A faith-based organization seeking to dispose or change its use of such real property, during the term of this Agreement or after the term of this Agreement, must seek instructions from HUD and the City regarding its compliance responsibilities.
REVERSION OF ASSETS. INCLUDING REAL PROPERTY
REVERSION OF ASSETS. The City will have the same ownership interest in any documents, plans, designs, renderings prepared, or services performed under the Scope of Work of this Agreement as the Site Developer or Owner shall have, including but not limited to any work completed or undertaken and not yet complete.