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832 nor shall any facilities used in the performance of this contract be used for sectarian instruction or as a place of religious worship. SECTION 14. LEGAL AUTHORITY A. Contractor assures and guarantees that Contractor possesses the legal authority to enter into this contract, receive funds authorized by this contract, and to perform the services Contractor has obligated itself to perform hereunder. B. The person or persons signing and executing this contract on behalf of Contractor, or representing themselves as signing and executing this contract on behalf of Contractor, do hereby warrant and guarantee that he, she or they have been duly authorized by Contractor to execute this contract on behalf of. Contractor and to validly and legally bind Contractor to all terms, perform- ances, and provisions herein set forth. C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render per- formances hereunder. Contractor.is liable to Department for any money it has received from Department for performance-of the provisions of this contract, if Department has suspended or terminated this contract for reasons enumer- ated in this Section 14. SECTION 15.- LITIGATION AND CLAIMS- Contractor shall give Department 'Immediate notice in- .writing of 1) any action, including any proceeding-before an administrative agency,.filed against Contractor arising out the performance of any subcontract hereunder; and 2) any claim against Contractor, the cost and expense of which Contractor may be entitled to have reimbursed by Department. Except as-otherwise directed by Department, Contractor shall furnish immediately to Department copies of all pertinent papers received by Contractor with - respect to such action or claim. SECTION 16. CHANGES AND AMENDMENTS A. Except as specifically provided otherwise in this contract,.any alter- ations, additions, or deletions to the terms-of this contract shall be by amendment hereto in writing and executed .by both parties to this contract. B. It is understood and agreed by the parties hereto that performances under this contract must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Depart- ment by Contractor', and the assurances and certifications made to the United States Department of Housing and Urban_Development by the State of Texas with regard to the operation of the Texas Rental Rehabilitation Program (TRRP). Based on these considerations, and in order to ensure the legal and effective performance of this contract by both parties, it is agreed by the parties hereto that the performances under this contract are amended by the provi- sions of the TRRP Implementation Manual and,any amendments thereto and may further be amended in the following manner: Department may from time to time during the period of performance of this--contract issue policy directives PAGE 7 OF 11