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MnDOT Agreement #06820 Grant Recipient's interest in or for the betterment of the Real Property and, if applicable, the Facility in the order of priority of such debt. C. Any remaining portion, after the distributions specified in Sections 3.03.A and B, shall be divided and distributed in proportion to the shares contributed to the acquisition of the Grant Recipient's interest in or for the betterment of the Real Property and, if applicable, the Facilities by public and private entities, including the State Entity but not including any private entity that has been paid in full, that supplied funds in either real monies or like -kind contributions for such acquisition and betterment, and the State Entity's distribution shall be made to the Commissioner of Management and Budget. Such public and private entities may agree amongst themselves as to any redistribution of such distributed funds. The Grant Recipient shall not be required to pay or reimburse the State Entity or the Commissioner of Management and Budget for any funds above and beyond the full net proceeds of such sale, even if such net proceeds are less than the amount of the Outstanding Balance of the Grant. Article IV COMPLIANCE WITH THE CODE Section 4.01 Preservation of Tax -Exempt Status. In order to preserve the tax-exempt status of the G.O. Bonds, the Grant Recipient agrees as follows: A. It will not use the Real Property or, if applicable, Facility, or use or invest the Grant or any other sums treated as "bond proceeds" under Section 148 of the Code including "investment proceeds," "invested sinking funds," and "replacement proceeds," in such a manner as to cause the G.O. Bonds to be classified as "arbitrage bonds" under Section 148 of the Code. B. It will deposit into and hold all of the Grant that it receives under this Agreement in a segregated non-interest bearing account until such funds are used for payments for the Project in accordance with the provisions contained herein. C. It will, upon written request, provide the Commissioner of Management and Budget all information required to satisfy the informational requirements set forth in the Code including, but not limited to, Section 103 and 148 thereof, with respect to the G.O. Bonds. D. It will, upon the occurrence of any act or omission by the Grant Recipient or any Usee that could cause the interest on the G.O. Bonds to no longer be tax-exempt and upon direction from the Commissioner of Management and Budget, take such actions and furnish such documents as the Commissioner of Management and Budget determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal taxation, which such action may include either: (i) compliance with proceedings intended to classify the G.O. Bonds as a "qualified bond" within the meaning of Section 141(e) of Little Caanda GO Bond Proceeds Grant Agreement Ver — 5/06/15 for MnDOT Antiquated Equipment Grants 2 1 •