Sec. 32-702. Procedure if noncompliance with agreement. Default. Penalty.
Sec. 32-702. Procedure if noncompliance with agreement. Default. Penalty.
If an awarding authority finds that a recipient of state assistance is not in substantial
compliance with any other provision of the agreement and such noncompliance is within
the recipient's control, the awarding authority shall provide written notice, by registered
mail, to the recipient and shall order the recipient to come into compliance with such
agreement not less than one hundred eighty days following receipt of such notice. Failure
to comply with reporting requirements set forth in such agreement shall constitute a
default. If the recipient fails to come into compliance with such agreement within the
one-hundred-eighty-day period, the awarding authority may (1) rescind the agreement
and require that the state be made whole by the repayment by the recipient of (A) the
amount of any grant made, (B) the amount of any loan outstanding, including any interest
necessary to make the state whole, or (C) the amount of any tax benefit received, or (2)
impose a penalty on such recipient, for the period of failure to comply, at the rate of
one per cent per month or any part thereof of the amount of the grant, tax benefit or loan
outstanding. The awarding authority may foreclose on any collateral or bond related to
such grant, tax benefit or loan for the purpose of payment of such penalty and any costs
incurred by the awarding authority in connection with collection of such penalty.
(P.A. 02-86, S. 3.)