Common use of Financial Sanctions Clause in Contracts

Financial Sanctions. H-GAC retains the right to deduct the amount of any advance payment or previous overpayment made by H-GAC, from any subsequent billing submitted by Contractor for violations under this contract. Failure to comply with the Contractor obligations or submit xxxxxxxx timely is valid justification for termination of this contract or disallowance of payment. Contractor will be liable for and will repay to H-GAC, on demand, any amounts which are not expended in compliance with this contract, or disallowed as a result of a resolution agreement. Contractor will further be responsible for any audit exception or other payment deficiency covered by this contract and all subcontracts hereunder which is found to exist by monitoring or auditing by any party as authorized or required by H-GAC. Contractor will be liable for such funds and will repay such funds even if the improper expenditure, if any, was made by a subcontractor of Contractor. All repayment made by the Contractor shall be from non-federal/state funds. Contractor’s failure to pay within 30 days after demand may result in legal actions to recover such funds, sanctions as set forth in this section and/or additional cost including allowable interest.