Common use of TERMINATION OF CONTRACT FOR LACK OF FUNDING Clause in Contracts

TERMINATION OF CONTRACT FOR LACK OF FUNDING. The obligation of the District for payment to the Service Provider is limited to the availability of funds appropriated in a current fiscal period. The continuation of the contract into a subsequent fiscal period is subject to the appropriation of funds, unless otherwise authorized by law. In that event, as of the effective date of the cancellation, all finished or unfinished services, reports or other materials prepared by the Service Provider shall, at the option of the District, become its property, and Service Provider shall be entitled to receive compensation for any satisfactory work completed, prepared documents or materials as furnished. Notwithstanding the above, the Service Provider shall not be relieved of liability to the District for damage sustained by the District by virtue of breach of the contract by the Service Provider and the District may withhold any payments to the Service Provider until such time as the exact amount of damages due the District from the Service Provider is determined. If the contract is terminated by the District as provided herein, the Service Provider will be paid an amount as of the time notice is given by the District which bears the same ratio to the total compensation as the services actually performed or material furnished bear to the total services/materials the Service Provider covered by the contract, less payments of compensation previously made.