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<br />ARTICLE 5. Severability <br />If any provision of this contract will be construed to be illegal or invalid, <br />this will not affect the legality or validity of any of the other provisions <br />hereof. The illegal or invalid provision will be deemed stricken and deleted <br />herefrom to the same extent and effect as if never incorporated herein, but <br />all other provisions will continue. <br />ARTICLE 6. Applicable Laws and Standards <br /> <br />This contract will be governed by the laws of the State of Texas and <br />enabling state/federal regulations, including federal grant requirements <br />applicable to funding sources as set out in attachments(s) hereto, and <br />Treasury Circular 1075 (31 CFR Part 205) as applicable to advance of funds. <br />PERFORMING AGENCY agrees Article 4413 (32g), V.T.C.S., [Uniform Grant and <br />Contract Management Standards Manual (UGCMS)] , as may be amended by revised <br />federal circulars to be incorporated in UGCMS by the Governor's Budget and <br />Planning Office, applies as terms and conditions of this contract, and the <br />standards are adopted by reference in their entirety. If a conflict arises <br />between the provisions of this contract and UGCMS, the provisions of UGCMS <br />will prevail unless expressly stated otherwise. A copy of this manual and its <br />references are provided to PERFORMING AGENCY by RECEIVING AGENCY upon request. <br />An exception to UGCMS is made in that Office of Management and Budget (OMB) <br />Circular A-102, Attachment P, Audit Requirements, is replaced. Audits will be <br />in compliance with OMB Circular A-128, Audits of State and Local Governments. <br />Such audits fulfill requirements of the Single Audit Act of 1984, P.L. 98-502. <br />Within 30 days of receipt of audit report, PERFORMING AGENCY will submit a <br />copy to RECEIVING AGENCY's Internal Audit Division. <br />PERFORMING AGENCY must obtain prior approval from RECEIVING AGENCY for major <br />project changes which are specified in RECEIVING AGENCY's institutional prior <br />approval procedures. These procedures are incorporated by reference as a <br />condition of this contract. <br />PERFORMING AGENCY certifies by execution of this contract that its payment of <br />franchise taxes is current or, if PERFORMING AGENCY is exempt from payment of <br />franchise taxes, that it is not subject to the State of Texas franchise tax. <br />A false statement regarding franchise tax status will be treated as a material <br />breach of this contract and may be grounds for termination at the option of <br />RECEIVING AGENCY. If franchise tax payments become delinquent during the <br />attachment term, payments under this contract will be held until PERFORMING <br />AGENCY's delinquent franchise tax is paid in full. <br />PERFORMING AGENCY further certifies by execution of this contract that it is <br />not ineligible for participation in federal or state assistance programs under <br />Executive Order 12549, Debarment and Suspension. PERFORMING AGENCY <br />specifically asserts that it does not owe a single substantial debt or a <br />number of outstanding debts to a federal or state agency. A false statement <br />regarding PERFORMING AGENCY's status will be treated as a material breach of <br />this contract and may be grounds for termination at the option of RECEIVING <br />AGENCY. <br /> GENERAL PROVISIONS - Page 2 <br />