Section 280-RICR-20-20-3.10 - Restrictive Covenant: RecaptureA. Restrictive Covenant. Upon issuance of a Certificate of Completed Work, the Owner shall cause to be recorded in the applicable land evidence records a restrictive covenant pursuant to which,1. during the Holding Period, no alteration to the Certified Historic Structure will be made without the Commission's approval and in a manner consistent with the Standards for Rehabilitation;2. the Certified Historic Structure may not become Exempt from Real Property Tax; and3. the Commission and/or the Tax Division shall be granted the right to one or more Inspections during the Holding Period to confirm matters represented in the Historic Preservation Certification Application and to review any alterations. If the Owner is the holder of leasehold title, the fee owner of the Certified Historic Structure must also execute the Restrictive Covenant.B. Recapture. No Credit may be claimed with respect to property that is Exempt from Real Property Tax. Any Credit claimed under the Act shall be recaptured in full (by increasing the taxpayer's tax for the year by the total amount of Historic Preservation Investment Tax Credit actually used against the tax) if, within twenty-four 24 months after the issuance of a Certificate of Completed Work, the property becomes Exempt from Real Property Tax. The Assignor, if any, of any recaptured Credit shall recognize income in the amount of the proceeds of the assignment upon any recapture of the Credit. Recapture of the Credit may be appealed to the Commission in accordance with § 3.5(F) of this Part. The Commission shall notify the Tax Division of any recapture of the Credit and of the final administrative decision on any appeal. C. Liability for Recapture. In the event that tax credits that are subject to recapture have been transferred or assigned, the State will pursue its recapture remedies and rights against the Assignor or transferor of the tax credits or any other interested or responsible parties. No redress shall be sought against Assignees or transferees of such credits provided they acquired the tax credits by way of an arms-length transaction, for value, and without notice of violation, fraud or misrepresentation. It will be presumed that any transferee or Assignee who is an Affiliate or a Participant of the Assignor has notice of violation, fraud or misrepresentation and did not acquire the tax credits in an arms-length transaction.280 R.I. Code R. § 280-RICR-20-20-3.10