Common use of CONTRACT NONPERFORMANCE Clause in Contracts

CONTRACT NONPERFORMANCE. A. In the event of the AGENCY’s noncompliance with the provisions of this contract, the DEPARTMENT shall impose such contract sanctions as it may determine to be appropriate, including, but not limited to: (1) Withholding of payments to the AGENCY under the contract until the AGENCY complies, and/or (2) Cancellation, termination, or suspension of the contract, in whole or in part. B. If at any time it is determined by the DEPARTMENT that there is any outstanding right or claim of right in or to the PROJECT property, the existence of which creates an undue risk of interference with the operation of the PROJECT or the performance of the covenants of the AGENCY herein contained, the AGENCY will acquire, extinguish or modify said right of claim in a manner acceptable to the DEPARTMENT. C. The AGENCY will promptly, upon written notification, reimburse the DEPARTMENT for any justified audit exceptions. If reimbursement of audit exceptions is not made to the DEPARTMENT within 30 days of said written notification, the DEPARTMENT may recover such reimbursements from subsequent public transit AGREEMENTS at the DEPARTMENT’s discretion.