[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR226]

[Page 1049]
 
                       TITLE 22--FOREIGN RELATIONS
 
            CHAPTER II--AGENCY FOR INTERNATIONAL DEVELOPMENT
 
PART 226_ADMINISTRATION OF ASSISTANCE AWARDS TO U.S. NON-GOVERNMENTAL 
 
                    Subpart C_Post-award Requirements
 
Sec.  226.61  Suspension and termination.

    (a) Awards may be terminated (or, with respect to paragraphs (a) (1) 
and (3) of this section, suspended) in whole or in part if any of the 
circumstances stated in paragraphs (a)(1) through (4) of this section 
apply.
    (1) By USAID, if a recipient materially fails to comply with the 
terms and conditions of an award.
    (2) By USAID with the consent of the recipient, in which case the 
two parties shall agree upon the termination conditions, including the 
effective date and, in the case of partial termination, the portion to 
be terminated.
    (3) If at any time USAID determines that continuation of all or part 
of the funding for a program should be suspended or terminated because 
such assistance would not be in the national interest of the United 
States or would be in violation of an applicable law, then USAID may, 
following notice to the recipient, suspend or terminate the award in 
whole or in part and prohibit the recipient from incurring additional 
obligations chargeable to the award other than those costs specified in 
the notice of suspension. If a suspension is effected and the situation 
causing the suspension continues for 60 days or more, then USAID may 
terminate the award in whole or in part on written notice to the 
recipient and cancel any portion of the award which has not been 
disbursed or irrevocably committed to third parties.
    (4) By the recipient upon sending to USAID written notification 
setting forth the reasons for such termination, the effective date, and, 
in the case of partial termination, the portion to be terminated. 
However, if USAID determines in the case of partial termination that the 
reduced or modified portion of the award will not accomplish the 
purposes for which the grant was made, it may terminate the award in its 
entirety under paragraph (a)(1), (a)(2) or (a)(3) of this section.
    (b) If costs are allowed under an award, the responsibilities of the 
recipient referred to in paragraph 226.71(a), including those for 
property management as applicable, shall be considered in the 
termination of the award, and provision shall be made for continuing 
responsibilities of the recipient after termination, as appropriate.

[[Page 1050]]