Misapplied Grant Clause Samples
The Misapplied Grant clause defines the procedures and consequences if grant funds are used for purposes not permitted under the agreement. Typically, this clause requires the recipient to repay any misused funds and may outline steps for investigation or remediation, such as providing documentation or cooperating with audits. Its core function is to ensure accountability and proper use of grant money, protecting the grantor from financial loss and ensuring compliance with funding requirements.
Misapplied Grant. (a) If the Recipient uses the Grant other than in accordance with this agreement (Misapplied Funds):
(i) the Department may, by written notice, require the Recipient to refund the Misapplied Funds; and
(ii) if the Department exercises its rights under clause 4.2(a)(i), then the Recipient must within 10 Business Days of receipt of the notice refund the Misapplied Funds plus any interest on it calculated on daily balances at the rate per annum determined by the Supreme Court of Queensland on judgments by default as applicable at the date of the Department’s notice and is fully capitalised on the last day of each month if unpaid; and
(iii) if the Misapplied Funds are not repaid in accordance with clause 4.2(a)(ii), the Department may:
(A) recover the amount as a liquidated debt due to the Department; or
(B) set the amount off against any other amount payable by the Department to the Recipient, whether under this agreement or otherwise.
(b) Nothing in this clause 4.2 affects the accrued rights or remedies of the Department, including the right to terminate this agreement in accordance with clause 22.4.
(c) Where the Department becomes aware of Misapplied Funds after the Term, clause 4.2(a) will apply in accordance with clause 22.7(b).