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<br /> :J. tlF <br /> Contractor shall furnish immediately to Department copies of all pertinent papers received by Con- <br /> tractor with respect to such action or claim. <br /> SECTION 16. CHANGES AND AMENDMENTS <br /> <br /> A. Except as specifically provided otherwise in this contract, any alterations, additions, or deletions <br /> to the terms of this contract shall be by amendment hereto in writing and executed by both parties <br /> to this contract. <br /> B. It is understood and agreed by the parties hereto that performances under this contract must <br /> be rendered in accordance with the Act, the Regulations, the assurances and certifications made to <br /> Department by Contractor, and the assurances and certifications made to the United States <br /> Department of Housing and Urban Development by the State of Texas with regard to the operation of <br /> the Texas Community Development Program. Based on these considerations, and in order to ensure <br /> the legal and effective performance of this contract by both parties, it is agreed by the parties hereto <br /> that the performances under this contract are amended by the provisions of the TCDP Project <br /> Implementation Manual and any amendments thereto and may further be amended in the following <br /> manner: Department may from time to time during the period of performance of this contract issue <br /> policy directives whi~h serve to establish, interpret, or clarify performance requirements under this <br /> contract. Such policy directives shall be promulgated by the Director of the TCDP in the form of TCDP <br /> issuances, shall have the effect of qualifying the terms of this contract and shall be binding upon <br /> Contractor, as if written herein, provided however that said policy directives and any amendments to <br /> said Manual shall not alter the terms of this contract so as to release Department of any obligation <br /> specified in Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective <br /> date of said amendments or policy directives. <br /> C. Any alterations, additions, or deletions to the terms of this contract wl,ich are required by chan- <br /> ges in Federal or state law or regulations are automatically incorporated into this contract without <br /> written amendment hereto, and shall become effective on the date designated by such law or regu- <br /> lation. <br /> D. Notwithstanding Subsection A of this Section 16, Contractor may make transfers of funds bet- <br /> ween or among budget categories of Exhibit B, Budget, without requiring an amendment to this <br /> contract, or otherwise requiring Department's prior written approval provided that: <br /> 1. The cumulative dollar amount of all transfers among direct budget categories is equal <br /> to or less than five percent (5 %) of the total amount of this contract as specified in Section 4 <br /> (C) herein; <br /> 2. The transfer will not change the scope or objective of the project funded under this <br /> contract; and <br /> 3. Contractor submits a budget revision report to Department, on a form specified by De- <br /> partment, simultaneously with the submission of Contractor's first Request for Advance Form <br /> 270 following any such transfers made in accordance with this Subsection D. <br /> SECTION 17. SUSPENSION <br /> Notwithstanding the provisions of Texas Civil Statutes Article 601 f, in the event Contractor fails to <br /> comply with any term of this contract, Department may, upon written notification to Contractor, sus- <br /> pend this contract in whole or in part and withhold further payments to Contractor, and prohibit <br /> Contractor from incurring additional obligations of funds under this contract. <br /> Page 7 of 1 6 <br />