Illinois Administrative Code
Title 14 - COMMERCE
Part 540 - TECHNOLOGY COMMERCIALIZATION GRANT-IN-AID PROGRAMS
Subpart B - ENTREPRENEURIAL INVESTMENT INITIATIVE PROGRAM
Section 540.190 - Modification, Suspension and Termination of Grants

1) Modifications by Operation of Law - The grant award is subject to such modifications as may be required by changes in State law or regulations. Any such required modifications shall be incorporated into and made part of the grant within the provisions of the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1989, ch. 127, pars. 2301 et seq.). The Department shall notify in writing the recipient of any amendment to such regulations.

2) Modifications in Budget - A recipient's request for budget variations in the amount or line item costs shall be in writing by registered letter and shall give justifications for the requested variations. The Department may approve modification requests, if, in the Department's sole determination, such is necessary to achieve program objectives of the program application contents set out in Section 540.140. Any changes in cost categories or line items shall not alter the activities or deliverables for the project. If the Department approves the modification request, the recipient will be notified in writing of the change and the effective date of the change.

3) Other Modification by Department or Recipient - If either the Department or the recipient requests to modify the terms of the grant award other than as set forth in subsections (a)(1) and (2) above, written notice of the proposed modification shall be given to the other party. No modifications shall take effect unless agreed to in writing by both the Department and the recipient.

1) If the Department believes that a recipient has failed to faithfully perform the terms and conditions of the scope of work of the project, then the Department shall suspend the grant and withhold further payments until the grant is terminated, or the recipient's failure has been corrected. The recipient may appeal such decision as provided in Section 540.170(b) of this Subpart.

2) The Department will determine that a recipient has failed to faithfully perform the terms and conditions of the scope of work of the project when:

1) Termination Due to Loss of Funding - In the absence of State funding for a specific year, all grants that year shall be terminated in full. In the event of a partial loss of State funding, the Department shall make proportionate cuts to all recipients.

2) Termination for Cause - If the Department determines that the recipient has failed to comply with the terms and conditions of the financial assistance; has failed to observe or perform or cause the observance or performance of any covenant contained in the agreement; or any statement, certification, representation or warranty made by or on behalf of the recipient shall prove to have been untrue or incorrect in any material respect when made, the Department shall terminate the grants in whole, or in part, at any time before the date of completion.

3) Termination by Agreement - The Department and the recipient shall terminate the grant in whole, or in part, when the Department and the recipient agree that the continuation of the project would not produce beneficial results commensurate with the future expenditures of funds.