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portion of the Real Property and, if applicable, the Facility in a manner which is not inconsistent with the program specified in Section 2,03 and the lender uses its best efforts to sell such acquired interest to a third party for Fair Market Value. The lender's ultimate sale or disposition of the acquired interest in the Real Property and, if applicable, the Facility shall be deemed to be a sale for the purposes of this Agreement, and the proceeds thereof shall be disbursed in accordance with the provisions contained in Section 3.03. Section 3.03 Proceeds of a Sale. Upon the sale of the Grant Recipient's interest in the Real Property and, if applicable, the Facility the net proceeds thereof shall be disbursed in the following manner and order, A. The first distribution shall be to the Commissioner of Management and Budget in an amount equal to the Outstanding Balance of the Grant, and if the amount of such net proceeds shall be less than the amount of the Outstanding Balance of the Grant then all of such net proceeds shall be distributed to the Commissioner of Management and Budget, B. The remaining portion, after the distribution specified in Section 3.03.A, shall be distributed to pay in full any outstanding public or private debt incurred to acquire the 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 Little Caanda G0 Bond Proceeds Grant Agreement Ver — 5/06/15 for MnDOT Antiquated Equipment Grants 13