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Agreement No. 25-912014 <br /> governance structure, as applicable. Nevertheless, PART TWO or PART THREE may impose further restrictions. <br /> Failure to comply with this ARTICLE constitutes a material breach of this Agreement. <br /> ARTICLE XVII <br /> CONFLICT OF INTEREST <br /> 17.1. Required Disclosures.Grantee must immediately disclose in writing any potential or actual <br /> Conflict of Interest to Grantor. 2 CFR 200.112; 30 ILCS 708/35. <br /> 17.2. Prohibited Payments. Payments made by Grantor under this Agreement must not be used by <br /> Grantee to compensate,directly or indirectly, any person currently holding an elective office in this State including, <br /> but not limited to,a seat in the General Assembly. In addition,where Grantee is not an instrumentality of the <br /> State of Illinois,as described in this Paragraph, Grantee must request permission from Grantor to compensate, <br /> directly or indirectly, any officer or any person employed by an office or agency of the State of Illinois. An <br /> instrumentality of the State of Illinois includes,without limitation,State departments,agencies, boards,and State <br /> universities. An instrumentality of the State of Illinois does not include,without limitation, units of Local <br /> Government and related entities. <br /> 17.3. Request for Exemption.Grantee may request written approval from Grantor for an exemption <br /> from Paragraph 17.2.Grantee acknowledges that Grantor is under no obligation to provide such exemption and <br /> that Grantor may grant any such exemption subject to additional terms and conditions as Grantor may require. <br /> ARTICLE XVIII <br /> EQUIPMENT OR PROPERTY <br /> 18.1. Purchase of Equipment. For any equipment purchased in whole or in part with Grant Funds, if <br /> Grantor determines that Grantee has not met the conditions of 2 CFR 200.439,the costs for such equipment will <br /> be disallowed.Grantor must notify Grantee in writing that the purchase of equipment is disallowed. <br /> 18.2. Prohibition against Disposition/Encumbrance.Any equipment, material,or real property that <br /> Grantee purchases or improves with Grant Funds must not be sold,transferred,encumbered (other than original <br /> financing)or otherwise disposed of during the Award Term without Prior Approval of Grantor unless a longer <br /> period is required in PART TWO or PART THREE and permitted by 2 CFR Part 200 Subpart D. Use or disposition of <br /> real property acquired or improved using Grant Funds must comply with the requirements of 2 CFR 200.311. Real <br /> property, equipment,and intangible property that are acquired or improved in whole or in part using Grant Funds <br /> are subject to the provisions of 2 CFR 200.316. Grantor may require the Grantee to record liens or other <br /> appropriate notices of record to indicate that personal or real property has been acquired or improved with this <br /> Award and that use and disposition conditions apply to the property. <br /> 18.3. Equipment and Procurement.Grantee must comply with the uniform standards set forth in 2 CFR <br /> 200.310-200.316 governing the management and disposition of property,the cost of which was supported by <br /> Grant Funds.Any waiver from such compliance must be granted by either the President's Office of Management <br /> and Budget,the Governor's Office of Management and Budget, or both,depending on the source of the Grant <br /> Funds used. Additionally,Grantee must comply with the standards set forth in 2 CFR 200.317-200.327 to establish <br /> procedures to use Grant Funds for the procurement of supplies and other expendable property,equipment, real <br /> property and other services. <br /> 18.4. Equipment Instructions.Grantee must obtain disposition instructions from Grantor when <br /> equipment, purchased in whole or in part with Grant Funds, is no longer needed for their original purpose. <br /> Notwithstanding anything to the contrary contained in this Agreement,Grantor may require transfer of any <br /> equipment to Grantor or a third party for any reason, including,without limitation, if Grantor terminates the <br /> State of Illinois <br /> GRANT AGREEMENT FISCAL YEAR 2026 <br /> Page 19 of 43 <br />