Common use of Disallowance Clause in Contracts

Disallowance. If Contractor claims or receives payment from City for a service, reimbursement for which is later disallowed by the State of California or United States Government, Contractor shall promptly refund the disallowed amount to City upon City’s request. At its option, City may offset the amount disallowed from any payment due or to become due to Contractor under this Agreement or any other Agreement. By executing this Agreement, Contractor certifies that Contractor is not suspended, debarred or otherwise excluded from participation in federal assistance programs. Contractor acknowledges that this certification of eligibility to receive federal funds is a material terms of the Agreement.

Disallowance. If Contractor Consultant claims or receives payment from City for a service, reimbursement for which is later disallowed by the State of California or United States Government, Contractor Consultant shall promptly refund the disallowed amount to City upon City’s request. At its option, City may offset the amount disallowed from any payment due or to become due to Contractor Consultant under this Agreement or any other Agreement. By executing this Agreement, Contractor Consultant certifies that Contractor Consultant is not suspended, debarred or otherwise excluded from participation in federal assistance programs. Contractor Consultant acknowledges that this certification of eligibility to receive federal funds is a material terms of the Agreement.