Section 661.203  Termination

a)         Grant Termination by Agency

The Agency, by written notice and after consultation with the grantee, may terminate the grant.  Cause for termination shall include, but not be limited to:  default (inability or unwillingness to perform under this Part) by the grantee, failure by the grantee to comply with the terms and conditions of the grant, lack of adequate funding, or advancements in the state of the art.  Upon termination, the grantee shall refund to the State of Illinois any unexpended grant funds, except that portion required by the grantee to make payment for materials and equipment furnished or services rendered under an enforceable contract prior to the effective date of the termination and further provided that those costs are otherwise allowable under Section 661.701 and under the conditions of the grant.

b)         Project Termination by Grantee

The grantee may not terminate a project for which the grant has been awarded, except for good cause. Good cause for termination shall include, but not be limited to, realignment of programs, change in program requirements or priorities, lack of adequate funding, or advancement in the state of the art.  If the Agency finds that there is good cause for the termination of all or any portion of a project for which the grant has been awarded, it shall enter into a termination agreement or unilaterally terminate the grant, effective with the date of termination of the project by the grantee.  Any termination agreement shall include special conditions for the termination of the grant.  If the Agency finds that the grantee has terminated the project without good cause, then the grant shall be annulled and all grant funds previously paid or owing to the grantee shall be returned to the State of Illinois.

(Source:  Amended at 41 Ill. Reg. 13243, effective October 20, 2017)