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Article II <br />GRANT <br />Section 2.01 Grant of Monies. The DNR shall make the Program Grant to the Public Entity and <br />disburse the proceeds in accordance with the provisions of this Agreement. The Program Grant is not <br />intended to be a loan even though the portion thereof that is disbursed may need to be returned to the <br />DNR or the Commissioner of MMB under certain circumstances. <br />Section 2.02 Public Ownership. The Public Entity acknowledges and agrees that the Program <br />Grant is being funded with the proceeds of G.O. Bonds, and as a result thereof all of the Real Property <br />must be owned by one or more public entities. Such ownership may be in the form of fee ownership <br />and/or an easement. In order to establish that this public ownership requirement is satisfied, the Public <br />Entity represents and warrants to the DNR that it has, or will acquire, a fee simple and/or an easement <br />ownership interest in the Real Property, and, in addition, that it possesses, or will possess, all easements <br />necessary for the operation, maintenance and management of the Real Property. <br />Section 2.03 Use of Grant Proceeds. The Public Entity shall use the Program Grant solely to <br />reimburse itself for the planting of publicly owned shade trees on public land (Real Property) to provide <br />environmental benefits; replace trees lost to forest pests, disease or storm; or to establish a more diverse <br />community forest better able to withstand disease and forest pests, and may not use the Program Grant for <br />any other purpose. <br />Section 2.04 Public Entity Representations and Warranties. The Public Entity represents and <br />warrants to the DNR as follows: <br />A. It has legal authority to enter into, execute, and deliver this Agreement and all <br />documents referred to herein, and it has taken all actions necessary to its execution and delivery of <br />such documents. <br />B. It has legal authority to use the Program Grant for the purposes described in the State <br />Program Enabling Legislation. <br />C. It has legal authority to operate the State Program and the Real Property for the <br />purposes required by the State Program and for the functions and activities proposed in the Grant <br />Application. <br />D. This Agreement and all other documents referred to herein are the legal, valid and <br />binding obligations of the Public Entity enforceable against the Public Entity in accordance with <br />their terms. <br />E. It will comply with all of the terms and conditions of this Agreement and all other <br />documents referred to herein. <br />F. It will comply with all of the provisions and requirements of Minn. Stat. Sec. 16A.695, <br />the Commissioner's Order, and the State Program. <br />G. It has made no material false statement or misstatement of fact in connection with its <br />receipt of the Program Grant, and all of the information it has submitted or will submit to the DNR <br />or the Commissioner of MMB relating to the Program Grant or the disbursement of the Program <br />Grant is and will be true and correct. <br />3 <br />