N.J. Admin. Code § 19:32-1.12

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:32-1.12 - Termination of the grant agreement for cause

(a) The Authority may terminate the grant agreement upon an event of default, which shall include, but not be limited to:

1. Failure by the district to observe and perform any duty, covenant, condition, or agreement on its part to be observed or performed pursuant to the grant agreement, which failure shall continue for a period of 30 days after receipt of written notice specifying such failure and requesting that it be remedied is given to the district by the Authority, unless the Authority shall agree, in writing to an extension of such time prior to its expiration, provided, however, that if the failure stated in such notice is correctable but cannot be corrected within the applicable period, the Authority may not unreasonably withhold its consent to an extension of such time up to 120 days from delivery of the written notice referred to above or if corrective action is instituted by the district within the applicable period and diligently pursued until the event of default is corrected;

2. Any representation made by or on behalf of the district contained in the grant agreement, or in any instrument furnished in compliance with or with reference to the grant agreement or the grant, is false or misleading in any material respect;

3. A determination is made by the Authority that:

i. The grant was obtained by fraud; or

ii. Gross abuse or corrupt practices have occurred in the administration of the school facilities project by the district;

4. Subject to unavoidable delays, the construction of the school facilities project has not commenced within 18 months after the commencement date;

5. Subject to unavoidable delays, the construction of the school facilities project has not reached final completion on or before the completion date;

6. The district has utilized grant moneys for costs that are not approved costs;

7. Work on the school facilities project has ceased without good cause as agreed to by the Authority. The term "good cause" shall include, but not be limited to, circumstances beyond the control of the district or any of the contracted parties such as fire, flood, riot, or strike.

8. The district has contracted with a contractor or a subcontractor in one of the four branches specified at N.J.S.A. 18A:18A-18 and such contractor or subcontractor has not been prequalified;

9. The district has disbursed grant monies to a firm which is debarred, suspended, or disqualified from State, NJEDA, or Authority contracting or to a firm that has not been prequalified; or

10. The district fails to permit the Authority or the Office of the Attorney General immediate entry or inspection.

(b) The Authority shall promptly notify the district, in writing, of its determination to terminate the grant agreement and the reasons for the termination, together with the date on which the termination shall take effect.

(c) Upon termination of the grant agreement, the Authority may demand that an amount equal to the grant received by the district be immediately returned to the Authority and the district shall waive payment by the Authority of the undistributed balance, and upon notice to the district, the amount of the grant disbursed by the Authority shall be immediately due and payable by the district together with any costs to the Authority resulting from an event of default by the district.

(d) In addition to any termination action, the Authority retains the right to pursue any and all other remedies as may be available under State law as warranted.

(e) The Authority may, upon written notice to the district, suspend the grant agreement and withhold further payments there-under and prohibit the district from incurring additional obligations of grant funds pending corrective action by the district.

(f) At the option of the Authority, in its sole discretion, the Authority may, without prejudice to any other rights or remedies, take an assignment of any of the contracts in order to complete the school facilities project, and the district shall take whatever actions are necessary in order to ensure the proper assignment to the Authority of such contracts.

(g) The district shall on demand pay to the Authority the reasonable fees and expenses of attorneys and other reasonable expenses (including, without limitation, the reasonably allocated costs of in-house counsel and legal staff) incurred by the Authority in the collection of the repayment of the grant or in the enforcement of performance or observation of any other duties, covenants, obligations, or agreements, of the district upon an event of default.

N.J. Admin. Code § 19:32-1.12

Amended and recodified from 19:32-1.13 by 47 N.J.R. 2001(a), effective 8/3/2015

Amended by 55 N.J.R. 756(a), effective 4/17/2023