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. � '- . <br /> Department. Costs of coitstruction performed by employees <br /> of the Grantee will be disallowed as eligible Project costs <br /> unless the use of such employees is specifically approved <br /> in advance by the Department. <br /> ITEM 13 - RIGHT OF DEPARTMENT TO TERMINATE <br /> Upon written notice to the Grantee, the Department reserves the <br /> right to suspend or terminate all or part of the financial <br /> assistance herein provided for when the Grantee is, or has been <br /> in violation of the terms of this contract or when the <br /> Department determines that the purpose of the Acts would not be <br /> adequately served by continuation of State �financial assistance <br /> to the Project. Any failure to make progress which <br /> significantly endangers substantial performance of the Pro�ect <br /> within a reasonable time shall be deemed to be a violation of <br /> the terms of this contract. Termination of any part of the <br /> grant will not invalidate obligations properly incurred by the <br /> Grantee and concurred in by the Department prior to the date of <br /> termination, to the extent they are noncancellable. The . <br /> acceptance of a remittance by the State of any or all Project <br /> Funds previously received by the Grantee or the closing out of <br /> State financial participation in the Project shall not <br /> constitute a waiver of any claim which the State may otherwise <br /> have arising out of this Contract. <br /> ITEM 14 - PROJECT SETTLEMENT AND CLOSE-OUT <br /> Upon receipt of notice of successful completion of the pro�ect <br /> or upon termination by the Department, the Department shall <br /> perform a final audit of the Project to determine the <br /> allowability of costs incurred, and shall make settlement of <br /> the State grant described in this Contract. If the Department <br /> has made payment to the Grantee in excess of the total amount <br /> of such State grant, the Grantee shall promptly remit such <br /> excess to the State. The Project close-out occurs when the <br /> Department notifies the Grantee and forwards the final grant <br /> payment or when an appropriate refund of State grant funds has <br /> been received from the Grantee and acknowledged by the <br /> Department. Close-out shall be sub�ect to any continuing <br /> obligations imposed on the Grantee by this contract or <br /> contained in the final riotification or acknowledgment from the <br /> Department. <br /> TTEM 15 - GRANTEE'S WARRANTIES <br /> Grantee agrees to initiate and consummate all actions necessary <br /> to enabie it to enter into this Agreement. Grantee warrants <br /> that there is no provision of its charter, by-laws or any <br /> rules, regulations, or legislation which prohibits, voids, or <br /> 10 <br />