Prohibition on the Sale, Transfer or Pledge of Certain Assets

(1) A person or entity who expends any amount of Financial Assistance to acquire a Restricted Asset shall not sell, convey, transfer or pledge such Restricted Asset, nor any interest in the entity that owns such Restricted Asset, except if such sale, conveyance, transfer or pledge is to or for the benefit of a Social Equity Business or an Economic Empowerment Priority Applicant. Such restrictions shall expire on the fifth anniversary of the Contract commencement date. EOED may, in its discretion, provide in a Contract that the restriction period shall be fewer than five years, but in no event shall the restriction period be fewer than three years. (2) If a Restricted Asset is sold, conveyed, transferred or pledged in violation of the preceding section 8.07(1), then EOED shall be entitled to recover 100 percent of the Financial Assistance used to acquire the Restricted Asset. EOED shall provide written notice to a person or entity of the amount to be recovered and demand repayment by a date that is not sooner than thirty days after the date of the notice. (3) EOED may foreclose on any lien or exercise rights under any security interest on any Restricted Asset to enforce the provisions of this section 8.07. If EOED commences legal proceedings to recover money to which it is entitled pursuant to this section 8.07, EOED shall be entitled to recover reasonable attorney fees and costs.