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20. Every sub -recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 <br />CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public <br />Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non -A&E <br />services), and other applicable STATE and FEDERAL regulations. <br />21. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit <br />that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 <br />CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to <br />repayment by ADMINISTERING AGENCY to STATE. <br />22. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by <br />STATE as provided hereunder or should ADMINISTERING AGENCY breach this AGREEMENT <br />by failing to complete PROJECT without adequate justification and approval by STATE, then, <br />within thirty 30 days of demand, or within such other period as may be agreed to in writing <br />between the PARTIES, STATE, acting through the State Controller, the State Treasurer, or any <br />other public entity or agency, may withhold or demand a transfer of an amount equal to the <br />amount paid by or owed to STATE from future apportionments, or any other funds due <br />ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, <br />and/or may withhold approval of future ADMINISTERING AGENCY federal -aid projects. <br />23. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or <br />otherwise in default thereof by STATE, and if ADMINISTERING AGENCY Is constituted as a joint <br />powers authority, special district, or any other public entity not directly receiving funds through the <br />State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding <br />are available, including the withholding or transfer of funds, pursuant to Article IV - 22, from those <br />constituent entities comprising a joint powers authority or by bringing of an action against <br />ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by <br />STATE hereunder. <br />24. ADMINISTERING AGENCY acknowledges that the signatory party represents the <br />ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers <br />- Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or <br />otherwise limit STATE's ability to recover State funds improperly spent by ADMINISTERING <br />AGENCY in contravention of the terms of this AGREEMENT. <br />Pap© 10 of 26 <br />25F-12 <br />