Section 217.160  Default or Termination of Grant Agreement

a)         If the grantee violates any of the terms of the grant agreement, the Department shall send a written notice to the grantee that the grantee is in default.   The grantee will be given the opportunity to correct the violations.  If the grantee has not implemented a corrective action plan within 15 calendar days after receipt of the notification, the Director may do one or more of the following:

1)         Cease additional grant payments not yet made to the grantee;

2)         Terminate the grant agreement;

3)         Institute recovery of the grant funds under the Illinois Grant Funds Recovery Act [30 ILCS 705];

4)         Take any other action considered appropriate to protect the Department's interest in the project.

b)         A grant may be terminated by the Department under, but termination is not limited to, any of the following circumstances:

1)         failure to comply with the terms and conditions of the grant agreement;

2)         repeated failure to submit required reports;

3)         misapplication of grant funds;

4)         failure to provide the equity contribution required by Section 217.130;

5)         evidence of fraud and abuse;

6)         failure to maintain required records;

7)         repeated failure to meet performance timelines or standards; and

8)         failure to develop and implement a corrective action plan within 15 calendar days after the Department's notice.

c)         The Department may terminate the grant, in whole or in part, when the Department determines that the continuation of the project would not produce beneficial results commensurate with the continued expenditures of funds.

d)         The Department may terminate the grant, in whole or in part, if the Illinois General Assembly or federal funding source fails to make an appropriation sufficient to pay the obligation or to allow the Department to operate as required to fulfill its obligations under the grant, funds are not allocated, or the funds needed by the Department are insufficient for any reason.

e)         The recipient may refuse or elect not to complete the grant agreement and terminate the grant. The recipient shall notify the Department of any plans to terminate the grant in advance of the termination, but no later than 10 days after the date upon which performance ceases.  The Department shall declare due and payable the total amount of the grant and will cease grant payments for any reimbursement for which the expenditure was made after the date of termination.