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<br /> If PERFORMING AGENCY subcontracts a portion of this contract, PERFORMING AGENCY agrees to make a <br /> good faith effort to subcontract with HUBs during the performance of its contract Attachment( s) with RECEIVING <br /> AGENCY and will report HUB subcontract activity on a quarterly basis to RECEIVING AGENCY. <br /> PERFORMING AGENCY and its subrecipient(s), if any, are encouraged to use minority banks (a bank which is <br /> owned at least 50 percent by minority group members). <br /> ARTICLE 27. Sanctions <br /> RECEIVING AGENCY may impose sanctions for any breach of contract. PERFORMING AGENCY will be <br /> monitored both for programmatic and financial compliance. RECEIVING AGENCY may, at its own discretion, <br /> impose one or more sanctions for each item of noncompliance and will determine sanctions on a case-by-case basis. <br /> A state or federal statute, rule, regulation, or federal guideline will prevail over the provisions of this Article unless <br /> the statute, rule, regulation, or guideline can be read together with the provision(s) of this Article to give effect to <br /> both. <br /> RECEIVING AGENCY may: <br /> A. terminate all or a part of the contract. Termination is the permanent withdrawal of the PERFORMING <br /> AGENCY's authority to obligate previously awarded funds before that authority would otherwise expire <br /> or the voluntary relinquishment by the PERFORMING AGENCY to obligate previously awarded funds. <br /> PERFORMING AGENCY costs resulting from obligations incurred by the PERFORMING AGENCY <br /> after termination of an award are not allowable unless expressly authorized by the notice of termination. <br /> Termination does not include: (1) withdrawal of funds awarded on the basis of the grantee's <br /> underestimate of the unobligated balance in a prior period; (2) withdrawal ofthe unobligated balance as <br /> of the expiration of a grant; (3) refusal to extend a grant or award additional funds, to make a competing <br /> or noncompeting continuation, renewal, extension, or supplemental award; or (4) voiding of a grant upon <br /> determination that the award was obtained fraudulently, or was otherwise illegal or invalid from <br /> inception; <br /> B. suspend all or part of the contract. Suspension is, depending on the context, either (1) the temporary <br /> withdrawal of the PERFORMING AGENCY's authority to obligate funds pending corrective action by <br /> the PERFORMING AGENCY or its subrecipient(s) or pending a decision to terminate or amend the <br /> contract, or (2) an action taken by a suspending official in accordance with agency regulations <br /> implementing Executive Order 12549 to immediately exclude a person from participating in grant <br /> transactions for a period, pending completion of an investigation and such legal or debarment <br /> proceedings as may ensue. PERFORMING AGENCY costs resulting from obligations incurred by the <br /> PERFORMING AGENCY during a suspension are not allowable unless expressly authorized by the <br /> notice of suspension; <br /> C. disallow (deny both use of funds and matching credit for) all or part of the activities or action not in <br /> compliance; <br /> D. temporarily withhold cash payments. Temporarily withholding cash payments means the temporary <br /> withholding of advances or reimbursements to PERFORMING AGENCY or its subrecipient(s) for <br /> proper charges or obligations incurred, pending resolution of issues of noncompliance with grant <br /> conditions or indebtedness to the United States or to the State of Texas; <br /> (LGS) 1999 GENERAL PROVISIONS Page 16 4/98 <br />