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<br />ARTICLE 4. <br /> <br />GRANTEE ASSURANCES AND COMMITMENTS <br /> <br />A. Compliance with Laws and Regulations <br /> <br />This grant Agreement is governed by and shall be interpreted in accordance with the <br />laws of the State of California and the United States Department of Justice. Grantee <br />shall at all times comply with all applicable federal and state laws, rules, and <br />regulations, and all applicable local ordinances, specifically including, but not Iimitel:J <br />to, environmental, procurement and safety laws, rules, regulations, and ordinances. <br /> <br />B. Fulfillment of Assurances and Declarations <br /> <br />Grantee shall fulfill all assurances, declarations, representations, and statements <br />made by the Grantee in the Grant Application, documents, amendments, approved <br />modifications, and communications filed in support of its request for grant funds. <br /> <br />C. Use of Grant Funds <br /> <br />Grantee shall expend all grant and identified matching funds solely for eligible project <br />costs.. Grantee shall, upon demand, remit to the Board any grant funds and interest <br />or income not expended for eligible project costs or an amount equal to any grant <br />funds expended by the Grantee in violation of the terms, provisions, conditions, or <br />commitments of this Grant Agreement. <br /> <br />D. Permits and Licenses <br /> <br />Grantee agrees to procure all permits and licenses necessary to complete the project, <br />pay all charges and fees, and give all notices necessary or incidental to the due and <br />lawful proceeding of the project work. <br /> <br />E. Fidelity Bond <br /> <br />A fidelity bond is not required of projects operated by state, city, school districts, or <br />county units of government. American Indian governmental units do not qualify for an <br />exemption from the fidelity bond requirement. Community-based organizations <br />sponsored by state or local units of government may submit documentation verifying <br />sponsorship in lieu of the bond. <br /> <br />The fidelity bond must be issued in an amount equal to 50 percent of the total grant <br />award, including any augmentations, less matching funds if applicable. The fidelity <br />bond may have a deductible in an amount not to exceed one percent of the bond. <br />The bond period must cover the entire grant period. The fidelity bond must be <br />submitted to the Board within 60 days of entering into a signed agreement. Failure to <br />comply with this requirement may result in withholding of grant funds ancIJor <br />termination of the Grant Agreement. Refer to the BOG Audit Guide for additional <br />requirements. <br /> <br />Grantee: City of Santa Ana <br /> <br />401" <br /> <br />Exhibit A, Grant Agreement BOC #333-04 <br />