20 AAC 40.410. Suspension and termination of a grant

(a) If a grantee fails to comply with the terms of the grant or of 20 AAC 40.300 - 20 AAC 40.415, the authority may suspend or terminate the grant. The authority will give the grantee written notice of the grantee's failure to comply at least 15 calendar days before a suspension or termination of the grant takes effect. In the notice, the authority will state the reasons for the suspension or termination and the effective date of the suspension or termination.

(b) If a grant is suspended under (a) of this section, a grantee may not use grant money to pay an obligation incurred during the period of the suspension. However, the grantee may pay an obligation incurred before the period of suspension, if the grantee obtains the approval of the authority and if payment of the obligation would otherwise be allowed under 20 AAC 40.300 - 20 AAC 40.415 and the terms of the grant.

(1) the grantee takes corrective action and gives assurance of the corrective action that the authority considers satisfactory;

(2) the grantee successfully protests or appeals the suspension; or

(3) the authority or grantee terminates the grant.

(d) If the authority terminates a grant under this section, the authority will make arrangements that the authority considers necessary for managing the grant before the effective date of a termination and for closing the grant upon termination.

(e) The authority may terminate a grant before the end of the grant period, in whole or in part, with the consent of the grantee.

(f) A grantee may terminate a grant, in whole or in part, before the end of the grant period upon 30 calendar days' written notification to the authority stating the reasons for the termination, the effective date, and the portion of the grant to be terminated, if the termination is partial.

(g) A grantee may not incur any new obligation to be paid with money from a suspended or terminated grant or the terminated portion of a grant after receiving notice of the suspension or termination. The grantee shall make a reasonable effort to cancel the grantee's outstanding obligations that, but for the suspension or termination, would be payable, in whole or in part, with money from the grant. To the extent that the grantee is not able to cancel a properly incurred obligation, the authority may provide for payments to the grantee to satisfy that part of an obligation that, but for the suspension or termination, would be payable with money from the grant.

(h) If a grant is terminated under this section by either the authority or the grantee, the grantee shall, no later than 30 calendar days after the effective date of the termination, repay to the authority the unexpended portion of any advance payments received under the grant from the authority.

History: Eff. 10/24/2004, Register 172

Authority: AS 37.14.045

AS 47.30.031

AS 47.30.051

AS 47.30.056

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