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• Article II GR4NT Section 2.01 Grant of Monies. The State Entity shall issue the Grant to the Public Entity and disburse the proceeds in accordance with the provisions of this Agreement. The Grant is not intended to be a loan. • Section 2.02 Use of Grant Proceeds. The Public Entity shall use the proceeds of the Grant to perform, complete and fully pay for the Predesign Stage. Eligible uses incorporated into the Agreement shall be specified under "Special Conditions" in section 6?2 Additional Requirements. Section 2.03 Completion of Predesign Stage. The Public Entity shall diligently pursue and complete, or cause to be completed, the Predesign Stage and pay all of the costs related thereto. Section 2.04 Public Entih~ Representations and Warranties. With respect to the Predesign Stage the Public Entity covenants with and represents and warrants to the State Entity as follows: A. It has legal authority to enter into, execute and deliver this Agreement, and it has taken all actions necessary to its execution and delivery of this Agreement. B. This Agreement is a legal, valid and binding obligation of the Public Entity enforceable against the Public Entity in accordance with its terms. C. It will comply with all of the terms, conditions, provisions, covenants, requirements, and warranties contained in this Agreement. D. It will comply with all of the provisions and requirements contained in the G.O. Compliance Legislation and the Commissioner's Order. E. It has made no material false statement or misstatement of fact in connection with its receipt of the Grant, and all of the information it previously submitted to the State Entity or which it will submit to the State Entity in the future relating to the Grant or the disbursement of any of the Grant is and will be true and correct. F. It is not in violation of any provisions of its charter or of the laws of the State of Minnesota, and there are no actions, suits, or proceedings pending, or to its knowledge threatened, before any judicial body or governmental authority, against or effecting4it relating to the Predesign Stage, and it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Agreement or to perform any of the acts required of it in this Agreement. • G. Neither the execution and delivery of this Agreement, nor compliance with any of the terms, conditions, requirements, or provisions contained herein is prevented by, is a Generic GO Grant Agreement for Pre-Design or Design Grants V er - 7/30/03 (Gnrc GO GA-PrDsgn Gmt)