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City determines that the remaining portion of the award will not accomplish the purpose for <br /> which the award was made,the City may terminate the award in its entirety. <br /> L. Termination for Withdrawal, Reduction or Limitation of Funding <br /> In the event that funding from the Federal government is withdrawn, reduced or limited in any <br /> way after the effective date of this contract, and prior to its normal completion,the City may <br /> summarily terminate this Contract as to the funds reduced or limited, notwithstanding any other <br /> termination provision of this Agreement. If the level of funding so reduced or limited is so great <br /> that the City deems that the continuation of the program covered by this Agreement is no longer <br /> in the best interest of the public,the City may summarily terminate this Agreement in whole <br /> notwithstanding any other termination provisions of this Agreement. Termination under this <br /> Section shall be effective upon receipt of written notice by the Subrecipient or its representative. <br /> The City agrees to promptly notify the Subrecipient of any proposed reduction in funding by <br /> Federal or other officials. The Subrecipient agrees that upon receipt of such notice it shall take <br /> appropriate and reasonable action to reduce its spending in the affected funding area so that <br /> expenditures do not exceed the funding level which would result if said proposed reduction <br /> became effective. <br /> M. Remedial Actions <br /> 1. In the event of the Subrecipient's noncompliance with section 603(c) of the Act,Treasury's <br /> regulations implementing that section,and guidance issued by Treasury regarding the <br /> foregoing,as well as all other applicable federal statutes, regulations,executive orders,and <br /> interpretive guidance as may become applicable at any time,Treasury or the City may take <br /> available remedial actions as set forth in 2 C.F.R. 200.339. <br /> 2. Recoupment <br /> a. Subrecipient agrees that it is financially responsible for and will repay the City any and all <br /> indicated amounts following an audit exception which occurs due to the Subrecipient's <br /> failure,for any reason,to comply with the terms of this Agreement. This duty to repay <br /> the City shall not be diminished or extinguished by the termination of the Agreement. <br /> b. In the event of a violation of section 603(c)of the Act,the funds shall be subject to <br /> recoupment by the City. <br /> 3. Any funds paid to Subrecipient(a) in excess of the amount to which Subrecipient is <br /> authorized to retain under the terms of the Agreement; (b)that are determined by the <br /> Treasury Office of Inspector General to have been misused; (c) are determined by Treasury to <br /> be subject to a repayment obligation pursuant to section 603(e)of the Act; or(d)are <br /> otherwise subject to recoupment by the City, and have not been repaid by Subrecipient to <br /> the City shall constitute a debt to the City. <br /> 4. Any debts determined to be owed the City must be paid promptly by the Subrecipient.A debt <br /> is delinquent if it has not been paid by the date specified in the City's initial written demand <br /> for payment, unless other satisfactory arrangements have been made or if the City knowingly <br /> or improperly retains funds that are a debt.The City may take any actions available to it to <br /> collect such a debt. <br /> N. Notices.Whenever this Agreement provides for notice by one party to another,such notice shall <br /> be in writing and directed to each party's contact representative indicated within the Agreement <br /> EVE R E T T Everett Forward Grant Program Subrecipient Agreement Page 3 <br /> WASHINGTON <br />