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� i <br /> _ Funds previously received by the Grantee or the closing out of Government financial participation <br /> - in the Project shall not constitute a waiver of any claim which the Government may otherwise <br /> have arising out of this Agreement. <br /> Upon the occurrence of any condition or conditions listed in this ITEM for termination or <br /> suspension, the Parties agree that the Government, by written notice to the Grantee, may elect <br /> to withhold or delay payment as provided in the Approved Project Budget, or any portion <br /> thereof; or, if payment or payments have already been made pursuant hereto, to recall such <br /> payment or payments or any portion thereof. The Grantee agrees that upon receipt of such <br /> notice of recall, the Grantee shall immediately return such Grant payment or payments, or any <br /> portion thereof, which the Grantee has received pursuant hereto. <br /> The foregoing remedies shall become available to the Department if the Grantee violates the <br /> terms of this Agreement and/or if one or more of the of the following occurs: <br /> A. There is any misrepresentation of a material nature in the Grantee's Application, or <br /> amendment thereof, or otherwise in respect to this Agreement or in any document or <br /> � data furnished pursuant hereto, or in any other submission of the Grantee to the <br /> Department in connection with the Grant; <br /> B. There is pending litigation which, in the opinion of the Secretary of the Department, may <br /> jeopardize the 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 <br /> regulations, ordinances or statutes applicable to the Grantee, its officers or <br /> employees which, in the opinion of the Department, affects this Agreement; <br /> D. Any contributions provided by the Department pursuant to this Agreement are used for <br /> an ineligible purpose; <br /> E. The Grantee is unable to substantiate the proper use of the Grant provided pursuant to <br /> 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, <br /> significantly endangers substantial performance of the Project within a reasonable time; <br /> H. The Grantee has failed to maintain the Project Facilities as required by this Agreement; <br /> I. The Department determines that the purpose of the Acts would not be adequately <br /> served by continuation of state or federal assistance to the Project; or <br /> J. The State Legislature fails to make su�cient appropriations for this Grant. <br /> Grantee shall include similar provisions for suspension or termination in its third party contracts. <br /> Such contracts shall also describe conditions under which the contract may be terminated for <br /> default and for circumstances beyond 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 <br /> Department, the Department shall perform a final audit of the Project to determine the allowability <br /> of costs incurred, and shall make a final determination of amounts due to the Grantee under this <br /> Agreement. If#he Department has made payment to the Grantee in excess�of the total amount of <br /> . State/Federal Capital Grant page 17 <br />