Section 97.12 - Special grant or subgrant conditions for "high-risk" grantees(a) A grantee or subgrantee may be considered "high risk" if an awarding agency determines that a grantee or subgrantee:(1) Has a history of unsatisfactory performance, or(2) Is not financially stable, or(3) Has a management system which does not meet the management standards set forth in this part, or(4) Has not conformed to terms and conditions of previous awards, or(5) Is otherwise not responsible; and if the awarding agency determines that an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and shall be included in the award.(b) Special conditions or restrictions may include:(1) Payment on a reimbursement basis;(2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;(3) Requiring additional, more detailed financial reports;(4) Additional project monitoring;(5) Requiring the grantee or subgrantee to obtain technical or management assistance; or(6) Establishing additional prior approvals.(c) If an awarding agency decides to impose such conditions, the awarding official will notify the grantee or subgrantee as early as possible, in writing, of: (1) The nature of the special conditions/restrictions;(2) The reason(s) for imposing them;(3) The corrective actions which must be taken before they will be removed and the time allowed for completing the corrective actions and(4) The method of requesting reconsideration of the conditions/restrictions imposed.