1. (a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state and/or federal public transportation funds administered by the department, contractors must observe the requirements described in this section.
2. (b) Ownership. Unless explicitly authorized in writing by the department, title to all real property and equipment shall be vested in the contractor.
3. (c) Nonencumbrance. A contractor shall not execute any lease, pledge, mortgage, lien, or other contract touching or affecting the federal or state interest in any project facilities or equipment; nor shall the contractor, by any act or omission of any kind, adversely affect the federal or state interest or impair its continuing control over the use of project facilities or equipment.

Source Note:The provisions of this §31.55 adopted to be effective July 6, 1990, 15 TexReg 3643.