Agenda - 06-28-1994-IX-D - Laserfiche WebLink

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Page 3 NC SERVICE AGREEMENT I . Approved vault storage for coupons while in the possession of Contractor. The vault is equipped with electronic motion sensors which are monitored 24 hours per day when facility is closed. III . LIABILITY: In as much as the County is liable to the State of North Carolina and U.S.D.A. for any unauthorized coupon issuances or coupon thefts and for any coupon shortages or losses for whatever cause, including, but not limited to, loss due to erroneous mailings, the Contractor agrees that it shall be liable to the County in like manner and amount and shall hold the County harmless from claims of the State arising from any such cause; the Contractor further agreess A. That it will maintain in full force and effect during the term of this contract, or any renewal or extension thereof, such insurance or bond, and in such amount, as the County may require to indemnify the County against any theft of coupons while they are in the actual constructive possession of the Contractor, its agents and employees, and against any loss or shortage of coupons or other loss arising out of any act or omission of the Contractor, its agents and employees. B . That if the County suffers any loss of any shortage or reduction in coupons by reason of any act or omission of the Contractor, its agents or employees, the County, may recover the value of its losses by requiring that the Contractor pay the amount of such loss; but in no event shall the amount recovered by the County hereunder exceed its losses. C. In the event of cancellation or nonrenewal of the policy, the County shall be given thirty (30) days prior written notice. IV. AUDITS AND PROCEDURES: As required the Contractor will allow onsite reviews, audits, and inspections by County, State, or Federal staff and comply with their procedural requirements. Any deviations from Federal or State guidelines and procedures by either Contractor or County must have both the State office and FNS PRIOR approval . V. DEFAULT AND TERMINATION: A. Upon default by County, Contractor shall determine and receive from County the sum due for services rendered . In the event Contractor shall be required to institute a suit to collect any unpaid service payments due under this service agreement , Contractor shall be entitled to reasonable attorney' s fees set by the Court which shall not be more than 15 percent of the service payments so recovered by the Contractor from County.