Denial of Aid. If a State or Federal government agency is funding the Contract and fails to approve aid in reimbursement to the County for payments made hereunder by the County to the Consultant for expenditures made during the Term because of any act, omission or negligence on the part of the Consultant, then the County may deduct and withhold from any payment due to the Consultant an amount equal to the reimbursement denied by the state or federal government agency, and the County’s obligation to the Consultant shall be reduced by any such amounts. In such an event, if there should be a balance due to the County after it has made a final payment to the Consultant under the Contract, on demand by the County, the Consultant shall reimburse the County for the amount of the balance due the County, by check to the order of the Suffolk County Treasurer. The provisions of this subparagraph shall survive the expiration or termination of the Contract. The inability of the County or the Consultant to obtain Federal or State funds due to any act or omission of the Consultant shall be an Event of Default.
