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tarian instruction or as a place of religious worship. SECTION 14. LEGAL AUTHORITY A. Contractor assures and guarantees that Contractor possesses the legal authority to enter into this contract, receive funds authorized by this contract, and to perform the services Contractor has obligated itself to perform hereunder. B. The person or persons signing and executing this contract on behalf of Contractor, or represent- ing themselves as signing and executing this contract on behalf of Contractor, do hereby warrant and guarantee that he, she or they have been duly authorized by Contractor to execute this contract on behalf of Contractor and to validly and legally bind Contractor to all terms, performances, and provisions herein set forth. C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render performances hereunder. Contractor is liable to Department for any money it has re- ceived from Department for performance of the provisions of this contract, if Department has sus- pended or terminated this contract for reasons enumerated in this Section 14. SECTION 15. LITIGATION AND CLAIMS Contractor shall give Department immediate notice in writing of 1) any action, including any proceed- ing before an administrative agency, filed against Contractor arising out the performance of any subcontract hereunder; and 2) any claim against Contractor, the cost and expense of which Con- tractor may be entitled to be reimbursed by Department. Except as otherwise directed by Depart- ment, Contractor shall furnish immediately to Department copies of all pertinent papers received by Contractor with respect to such action or claim. SECTION 16. CHANGES AND AMENDMENTS A. Except as specifically provided otherwise in this contract, any alterations, additions, or deletions to the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contract. 8. It is understood and agreed by the parties hereto that performances under this contract must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Department by Contractor, and the assurances and certifications made to the United States Department of Housing and Urban Development by the State of Texas with regard to the operation of the Texas Community Development Program. Based on these considerations, and in order to ensure the legal and effective performance of this contract by both parties, it is agreed by the parties hereto that the performances under this contract are amended by the provisions of the TCDP Project Implementation Manual and any amendments thereto and may further be amended in the following manner: Department may tram time to time during the period of performance of this contract issue policy directives which serve to establish, interpret, or clarify performance require- ments under this contract. Such policy directives shall be promulgated by the Director of the TCDP in the form of TCDP issuances, shall have the effect of qualifying the terms of this contract and shall be binding upon Contractor, as if written herein, provided however that said policy directives and any amendments to said Manual shall not alter the terms of this contract so as to release Depart- ment of any obligation specified in Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective date of said amendments or policy directives. Page 6 of 12