(a) Awards may be terminated in whole or in part only if paragraphs
(a) (1), (a)(2), or (a)(3) of this section apply.
(1) By grant officers, if a recipient materially fails to comply
with the terms and conditions of an award.
(2) By grant officers, 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) By the recipient upon sending to the grant officer 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 the grant officer determines in the case of
partial termination that the reduced or modified portion of the grant
will not accomplish the purposes for which the grant was made, the grant
officer may terminate the grant in its entirety under either paragraphs
(a) (1) or (2) of this section.
(b) If costs are allowed under an award, the responsibilities of the
recipient referred to in Sec. 95.71(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.