N.J. Admin. Code § 19:34B-1.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 19:34B-1.5 - Remedies for events of default and noncompliance

(a) In addition to any other remedies as may be provided by law or by the grant agreement, in the event of noncompliance with any provisions of the Act, any condition of the grant agreement, or any requirement of this chapter, or upon the occurrence of an event of default, the Authority, after taking the action in (a)1 below, may take any of the actions or combinations thereof set forth in (a)2 through 5 below. The notice provided to the school district under (a)2 through 5 below shall notify the school district of the Authority's determination to exercise its right to take such action, and shall provide the reasons for such action, together with the date on which the selected action shall take effect.

1. Issue a notice of noncompliance in writing to the school district stating the nature of the noncompliance or default, and further stating that if corrective action is not taken within 30 days, or such longer time period as may be specified in the notice; or if the corrective action is inadequate or ineffective to correct the noncompliance issue as determined by the Authority, the Authority may take one or more of the actions contained in (a)2 through 5 below. A district may request in writing additional time for corrective action beyond the period specified in the notice, and the Authority, in its discretion, may consent to such extension of time;

2. Withhold grant disbursements or any portion thereof, upon 15 days written notice to the school district providing the reason(s) for the withholding;

3. Suspend the grant agreement and withhold further payments thereunder and prohibit the school district from incurring additional obligations of grant funds pending corrective action by the school district upon 30 days written notice to the school district;

4. Terminate the grant agreement and/or rescind the grant monies upon 30 days written notice to the Department and the SDA school district.

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

5. In addition to any withholding, suspension or termination action, the Authority retains the right to pursue any and all other remedies as may be available under State law as warranted.

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

(c) In the event of termination of the grant agreement, the Authority shall determine the method and direction for proceeding with the project, in the best interests of the project and the public interest.

(d) The school district shall, on demand, pay to the Authority the reasonable fees and expenses of attorneys and other reasonable expenses (including without limitation the reasonable 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 or non-compliance with this chapter.

N.J. Admin. Code § 19:34B-1.5