20 AAC 30.975. Suspension and termination of grant

(a) The council will, in its discretion, suspend a grant after providing the grantee with written notice of failure to comply if a grantee fails to comply with terms of a grant or this chapter. The council may not suspend the grant sooner than 30 days after the written notice of failure to comply is provided to the grantee. A grantee may not use grant money to pay an obligation incurred during the period of suspension. The grantee may pay an obligation incurred before the period of suspension if the grantee obtains the approval of the council and if payment of the obligation would otherwise be allowed under this chapter and under the terms of the grant. The suspension under this subsection remains in effect until the grantee takes corrective action satisfactory to the council, until the grantee successfully appeals the suspension, or until the council or grantee terminates the grant.

(b) The council will, in its discretion, terminate a grant, in whole or in part, before the end of the grant period if the grantee fails to comply with the terms of the grant or of this chapter. The council will notify the grantee in writing at least 15 days before the termination. The notice must state the reasons for the termination, the effective date, and the portion of the grant to be terminated if the termination is partial. The council will make necessary arrangements for managing the grant before the effective date of the termination and for closing the grant.

(c) A grantee may terminate a grant, in whole or in part, before the end of the grant period upon written notification to the council stating the reasons for the termination, the effective date, and the portion of the grant to be terminated if the termination is partial.

(d) If a grant is terminated, payments to the grantee or recovery of money by the council will be made in accordance with the rights and liabilities of the grantee and the council. The grantee may not incur new obligations to be paid with money from a terminated grant or the terminated portion of a grant after receiving notice of the termination of the grant. The grantee shall make a reasonable effort to cancel its outstanding obligations which, but for the termination, would be payable, in whole or in part, with money from the grant. To the extent that the grantee cannot cancel an obligation, the council will, in its discretion, provide for payments to satisfy the obligation if it would otherwise be payable with money from the grant and if it was properly incurred before the grantee received notice of termination.

History: Eff. 2/10/83, Register 85; am 6/28/98, Register 146

Authority: AS 44.27.052

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