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<br />may be entitled to be reimbursed by Department. Except as otherwise directed by Department, <br />Contractor shall furnish immediately to Department copies of all pertinent papers received by Contractor <br />with respect to such action or claim. <br /> <br />SECTION 16. <br /> <br />CHANGES AND AMENDMENTS <br /> <br />A. Except as specifically provided otherwise in this contract, any alterations, additions, or deletions to <br />the terms of this contract shall be by amendment hereto in writing and executed by both parties to this <br />contract. <br /> <br />B. It is understood and agreed by the parties hereto that performances under this contract must be <br />rendered in accordance with the Act, the Regulations, the assurances and certifications made to <br />Department by Contractor, and the assurances and certifications made to the United States <br />Department of Housing and Urban Development by the State of Texas with regard to the operation of <br />the Texas Community Development Program. Based on these considerations, and in order to ensure <br />the legal and effective performance of this contract by both parties, it is agreed by the parties hereto <br />that the performances under this contract are amended by the provisions of the TCDP Proiect <br />Implementation Manual and any amendments thereto and may further be amended in the following <br />manner. Department may from time to time during the period of performance of this contract issue <br />policy directives which serve to establish, interpret, or clarify performance requirements under this <br />contract. Such policy directives shall be promulgated by the Director of the TCDP in the form of TCDP <br />issuances, shall have the effect of qualifying the terms of this contract and shall be binding upon <br />Contractor, as if written herein, provided however that said policy directives and any amendments to <br />said Manual shall not alter the terms of this contract so as to release Department of any obligation <br />specified in Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective <br />date of said amendments or policy directives. <br /> <br />C. Any alterations, additions. or deletions to the terms of this contract which are required by changes in <br />Federal or state law or regulations are automatically incorporated into this contract without written <br />amendment hereto, and shall be come effective on the date designated by such law or regulation. <br /> <br />D. Notwithstanding Subsection A of this Section 16, Contractor may make transfers of funds between <br />or among budget categories of Exhibit B. Budget. without requiring an amendment to this contract. or <br />otherwise requiring Department's prior written approval provided that: <br /> <br />1. The cumulative dollar amount of all transfers among direct budget categories is equal to or less <br />than five percent (5%) of the total amount of this contract as specified in Section 4 (C) herein; <br /> <br />2. The transfer will not change the scope or objective of the projects funded under this contract; <br />and <br /> <br />3. Contractor submits a budget revision report to Department, on a fonn specified by Department. <br />simultaneously with the submission of Contractors first Request for Advance Form 270 following any <br />such transfers made in accordance with this Subsection D. <br /> <br />SECTION 17. <br /> <br />SUSPENSION <br /> <br />Notwithstanding the provisions of TEX. GOYT. CODE ANN. Chapter 2251, in the event Contractor fails <br />to comply with any term of this contract, Department may, upon written notification to Contractor, <br />suspend this contract in whole or in part and withhold further payments to Contractor, and prohibit <br />Contractor from incurring additional obligations of funds under this contract. <br /> <br />Page 7 of 12 <br />