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17 <br /> i <br /> A. The Subrecipient hereby agrees to remain fully informed of all laws and regulations that apply to <br /> the Subrecipient, and will give the Agency prompt notice of any action or event that may be cause 1 <br /> for suspension or termination of this Agreement and recapture Funds and/or rescind its obligation <br /> to awarded Funds to Subrecipient in the event of Subrecipient's non-compliance with the terms and <br /> conditions of the grant, as outlined in the Agreement and the Agreement Documents. <br /> B. The Agency may terminate,in its sole discretion,this Agreement and all of its obligations hereunder <br /> immediately upon written notice to Subrecipient, and recapture Program Funds from Subrecipient <br /> and/or rescind its obligation to disburse Funds to Subrecipient in the event Subrecipient is not in <br /> compliance with the terms and conditions of this Agreement. <br /> C. Either the Member or the Agency may terminate this Agreement at any time for any reason by <br /> providing 30 days prior written notice to the other party. In the event of said termination by the <br /> Member, the Agency will require the return of any disbursed, but unused funds and may require <br /> completion of any current units being rehabilitated at the time of the notice. <br /> D. Upon termination of this Agreement all of the Subrecipients work product, including files <br /> pertaining to this Agreement, shall become the property of the Agency if requested. <br /> E. In the event of termination,the Member shall not be relieved of liability to the Agency for damages <br /> sustained by the Agency by virtue of any breach of the Agreement by the Member. The Agency <br /> may withhold any reimbursement to the Member for the purpose of a set-off until such time as the <br /> exact amount of damages due the Agency from the Member is determined. <br /> F. In the event of a termination of this Agreement, Subrecipient must continue to comply with record <br /> retention requirements and provisions regarding confidentiality and indemnification. <br /> Part XIII. Default,Remedy, Suspension and Termination of Subaward <br /> A. Each of the following may be deemed an Event of Default under this Agreement: <br /> 1. Any material failure by Subrecipient to comply with the terms and conditions of this <br /> Agreement whether stated in this Agreement, a federal statute or regulation,North <br /> Carolina statute or regulation,the Agreement Documents or any warranty or assurance by <br /> Subrecipient. <br /> 2. Subrecipient fails to expend Funds in accordance with Program requirements. <br /> 3. Subrecipient fails to return Funds,subject to recapture,to the Agency within the requested <br /> time frame. <br /> 4. Subrecipient becomes the subject of a federal,state,or local investigation related to the use <br /> of federal or state funds. <br /> 5. Subrecipient fails to continue as a going concern; becomes insolvent, defunct, or <br /> commences bankruptcy proceedings; or should any director, officer, or senior manager of <br /> Subrecipient engage in fraud, willful misconduct, and gross negligence or misappropriate <br /> any Funds. <br /> Page 12 of 16 <br />