The contract may be terminated, in whole or in part, at any
time before the date of completion, whenever it is determined by the department
that the grantee has failed to comply substantially with the conditions of the
contract. The grantee shall be notified in writing by the department of the
reasons for the termination and the effective date. The grantee shall not incur
new obligations for the terminated portion after the effective date of
termination and shall cancel as many outstanding obligations as
possible.
The department shall administer the early elementary school
grants contingent upon their availability. If there is a lack of funds
necessary to fulfill the fiscal responsibility of the early elementary school
grants, the contracts shall be terminated or renegotiated. The department may
terminate or renegotiate a contract upon 30 days' notice when there is a
reduction of funds by executive order.
