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� t <br /> B. There is pending litigation which,in the opinion of the Secretary of the Department,may jeopardize the <br /> Grant or the carrying out of this Agreement; <br /> C. There has been,in connection with the Grant,any violation of the state or federal regulations,ordinances <br /> or statutes applicable to the Grentee,its officers or employees which,in the opinion of the <br /> Department,affects this Agreement; <br /> D. Any contributions provided by the Department pursuant to this Agreement are used for an ineligible <br /> purpose; <br /> E. The Grantee is unable to substantiate the proper use of the Grant provided pursuant to this Agreement; <br /> F. The Grantee is in default under any of the provisions of this Agreement; <br /> G. There is a failure to make progress which,in the judgment of the Department, significantly endangers <br /> substantial performance of the Project within a reasonable time; <br /> H. The Grantee has failed to maintain the Projed Facilities as required by this Agreement; <br /> 1. The Department determines that the purpose of the Acts would not be adequately served by continuation <br /> of state or federal assistance to the Project;or <br /> J. The State Legislature fails to make sufficient appropriations for this Grant. <br /> Grantee shall include similar provisions for suspension or termination in its third party contracts. Such contracts <br /> shall also describe conditions under which the contract may be terminated for default and for circumstances beyond <br /> the control of the contractor or subcontractor. <br /> ITEM 14-PROJECT SETTLEMENT AND CLOSE-OUT - <br /> Upon receipt of notice of successful completion of the Project or upon termination by the Department,the Department <br /> shall perform a final audit of the Project to deteRnine the allowability of costs incuned,and shall make a final <br /> determination of amounts due to the Grantee under this Agreement. If the Department has made payment to the <br /> Grantee in excess of the total amount of such Grant,as determined by the Audit,the Grantee shall promptly remit such <br /> excess to the[�epartment. The Project close-out occurs when the Department notifies the Grantee that the Project is <br /> closed-out and torwards the final Grant payment to the Grantee,or when an appropriate refund of state and federal <br /> Grant funds has been received from the Grantee and acknowledged by the Department. Close-out shall be subject to <br /> any continuing obligations imposed on the Grantee by this Agreement or contained in the final notification or <br /> acknowledgment from the Department. <br /> ITEM 15-GRANTEE'S WARRANTIES <br /> The Grantee agrees to initiate and consummate all actions necessary to enable it to properly and lawfully enter into <br /> this Agreement. The Grantee wanants that there is no provision of its charter,by-laws or any rules,regulations,or <br /> legislation which prohibits,voids,or otherwise renders unenforceable against the Grantee any provision or clause of <br /> this Agreement. The Grantee warrants further that it has paid all federal,state and local taxes levied or imposed and <br /> will continue to do so,excepting only those which may be contested in good faith,that the Grantee has or will obtain all <br /> licenses,permits or other authorizations required to meet the obligations assumed hereunder and that the Grantee will <br /> comply with all lawful statutes,ordinances,rules,and regulations as may apply to the obligations assumed hereunder. <br /> The Grantee agrees that,prior to Depaitment execution of this Agreement,the Grantee will deliver to the Department: <br /> State/Federa!Capita!Grant page 1 S <br />