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DocuSign Envelope ID: 348BB866-CFC7-422D-BFB7-863533B13759 <br />Award Management website may be obtained by calling 866-606-8220. <br />Subrecipient is responsible for renewing its registration with the System for <br />Award Management annually and maintaining an active registration status <br />throughout the Contract Period. <br />5.02 STATE FUNDING <br />(a) This Contract shall not be construed as creating any debt on behalf of the State of <br />Texas or the GLO in violation of Article III, Section 49, of the Texas <br />Constitution. The GLO's obligations hereunder are subject to the availability of <br />state funds. If adequate funds are not appropriated or become unavailable, the <br />GLO may terminate this Contract. In that event, the Parties shall be discharged <br />from further obligations, subject to the equitable settlement of their interests <br />accrued up to the date of termination. <br />(b) Any claim by Subrecipient for damages under this Contract may not exceed the <br />amount of payment due and owing Subrecipient or the amount of funds <br />appropriated for payment but not yet paid to Subrecipient under this Contract. <br />Nothing in this provision shall be construed as a waiver of the GLO's sovereign <br />immunity. <br />5.03 RECAPTURE OF FUNDS <br />Subrecipient shall conduct, in a satisfactory manner as determined by the GLO, the <br />Activities as set forth in the Contract. The discretionary right of the GLO to terminate for <br />convenience under Section 3.02 notwithstanding, the GLO may terminate the Contract <br />and recapture, and be reimbursed by Subrecipient for, any payments made by the GLO <br />(a) that exceed the maximum allowable HUD rate; (b) that are not allowed under <br />applicable laws, rules, and regulations; or (c) that are otherwise inconsistent with this <br />Contract, including any unapproved expenditures. This recapture provision applies to <br />any funds expended for the Proiect or any Activity that does not meet a CDBG-MIT <br />Program National Obiective as specified in the Performance Statement in <br />Attachment A or that is not otherwise eligible under CDBG-MIT regulations. <br />5.04 OVERPAYMENT AND DISALLOWED COSTS <br />Subrecipient shall be liable to the GLO for any costs disallowed pursuant to financial <br />and/or compliance audit(s) of funds Subrecipient received under this Contract. <br />Subrecipient shall reimburse the GLO for such disallowed costs from funds that were not <br />provided or otherwise made available to Subrecipient under this Contract. Subrecipient <br />must refund disallowed costs and overpayments of funds received under this Contract to <br />the GLO within 30 days after the GLO issues notice of overpayment to Subrecipient. <br />5.05 FINAL BENCHMARK <br />(a) Construction Activities <br />To ensure full performance of each construction Activity and the Project, the <br />GLO has set aside an amount equal to five percent (5%) of Subrecipient's <br />GLO Contract No. 22-119-004-D374 <br />Page 14 of 29 <br />