|(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or federal public transportation funds administered by the department, subrecipients shall observe the requirements described in this section. (b) Ownership. With regard to vehicles and real property purchased with funds provided by the department through grants executed on or after January 1, 2002, including vehicles and real property transferred from one subrecipient to another, a subrecipient shall record a lien naming the Texas Department of Transportation, Public Transportation Division, as the lienholder. The department may waive this requirement or may approve in writing an alternative form of recording its interest. (c) Nonencumbrance. Except as specifically authorized by these rules, a subrecipient 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 subrecipient, 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.