1. (a) The grant contract may be terminated in whole or in part by either party for either convenience or cause.

2. (b) Either party must give a minimum of five days' notice to the other party before termination for convenience. The grant contract may be terminated for convenience

   1. (1) by the department, with the consent of the grantee, when the two parties agree upon the termination conditions;
   2. (2) by the grantee, with the consent of the department, upon written notification to the department setting out the reasons for the termination.

3. (c) If a grantee fails to comply with the terms of the grant contract, or fails to use the grant for only those purposes which have been designated in the grant contract, the department will, in its discretion,

   1. (1) after notice in writing to the grantee, either suspend the grantee and withhold any further payment, or prohibit the grantee from incurring additional obligation of grant money, until the grantee takes corrective action or until the department decides to terminate the grant for cause;
   2. (2) terminate the grant in whole or in part, at any time before the final grant payment is made; the department will promptly notify the grantee in writing of the decision to terminate for cause, the reason for termination, and the effective date of termination.

(Eff. 6/7/84, Register 90)

Authority: AS 44.33.020