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allocations by the Commission. <br />11. The State reserves the right to conduct separate <br />technical and financial audits if it is determined necessary. <br />After tnSharelfundstreimbbursedTtoYLOCALl refund <br />any <br />ENTITY beyond <br />excess State <br />its entitlement. <br />12. Should the LOCAL ENTITY fail to pay STATE claims within <br />30 days of demand, the STATE, acting through State <br />Controller, may withhold an equal amount from future <br />apportionments due the LOa�L itsToTtion�mintercept Highway <br />andUsers <br />apply <br />Tax Fund. The STATE may, p these <br />any monies otherwise due the LOCAL ENTITY to pay <br />claims. <br />13. When THE PROJECT includes work to be performed by a <br />railroad, the contract for such work shall be entered into by <br />LOCAL ENTITY. LOCAL ENTITY shall enter into an agreement <br />with the railroad providing for maintenance of the protective <br />devices or other facilities installed under the service <br />contract and for Railroad Protective Insurance during <br />construction as necessary. <br />ARTICLE II - Right -of -Way <br />1. All related rights -of -way as are necessary for the <br />construction PROJECT shall be acquired by LOCAL ENTITY at its <br />own expense and no contract for construction of PROJECT, or <br />any portion thereof, shall be advertised until the necessary <br />rights -of -way have been secured. <br />2. The furnishing of rights -of -way as provided for herein <br />includes but may not be limited to: <br />(a) all real property required for THE PROJECT free <br />and clear of obstructions and encumbrances. <br />(b) the payment of damages to real property not <br />actually taken but injuriously affected by the <br />proposed improvement. <br />(c) the cost of relocating owners and occupants <br />pursuant to Government Code Sections 7260 -7277. <br />(d) the cost of demolition and sale of all <br />improvements on the right of way. <br />(e) the cost of all utility relocation, protection or <br />4 <br />