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prevention or elimination of slums or blight, (c) meet community development needs having a particular <br />urgency (as defined in 24 CFR Part 570.208). <br /> <br />7.7 Performance Monitoring. The City of San Leandro will monitor the performance of the <br />Subrecipient against goals and performance standards required herein. Substandard performance as <br />determined by the City of San Leandro will constitute non-compliance with this agreement. If action to <br />correct such substandard performance is not taken by the Subrecipient within a reasonable period of <br />time after being notified by the City of San Leandro, contract suspension or termination procedures will <br />be initiated. <br /> <br />7.8 Close-Outs. Subrecipient obligation to the City of San Leandro shall not end until all <br />closeout requirements are completed. Activities during this closeout period shall include, but are not <br />limited to: making final payments, disposing of program assets (including the return of all unused <br />materials, equipment, unspent cash advances, program income balances, and receivable accounts to <br />the City of San Leandro), and determining the custodianship of records. <br /> <br />7.9 Audits and Inspections. All Subrecipient records with respect to any matters covered <br />by this agreement shall be made available to the City of San Leandro, grantor agency, their designees <br />or the Federal Government, at any time during normal business hours, as often as the City of San <br />Leandro or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all <br />relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within <br />30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit <br />requirements will constitute a violation of this Agreement and may result in the withholding of future <br />payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance <br />with current City policy concerning Subrecipient audits. <br /> <br />8.0 ENFORCEMENT OF CONTRACT <br /> <br />8.1 Applicable Law. This Agreement shall be construed and interpreted both as to validity <br />and to performance of the parties in accordance with the laws of the State of California and the United <br />States, as applicable. Legal actions concerning any dispute, claim or matter arising out of or in relation <br />to this Agreement shall be instituted in the Superior Court of the County of Alameda, State of California, <br />the United States District Court for the Northern District of California, or any other appropriate court in <br />Alameda County, and Subrecipient covenants and agrees to submit to the personal jurisdiction of such <br />court in the event of such action. <br /> <br />8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party <br />shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured <br />party shall continue performing its obligations hereunder so long as the injuring party commences to <br />cure such default within ten (10) days of service of such notice and completes the cure of such default <br />within thirty (30) days after service of the notice, or such longer period as may be permitted by the <br />injured party; provided that if the default is an immediate danger to the health, safety and general <br />welfare, such immediate action may be necessary. Notwithstanding the foregoing, the City may <br />suspend any further payment of CDBG funds until Subrecipient is in compliance with this Agreement. <br />Compliance with the provisions of this Section shall be a condition precedent to termination of this <br />Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's <br />right to take legal action in the event that the depute is not cured. <br /> <br />8.3 Remedies Upon Default by Subrecipient. In addition to any other rights or remedies <br />available at law or in equity, if Subrecipient fails to fulfill its obligations under this Agreement, City may, <br />after compliance with the provisions of Section 8.2: <br /> <br />a. Temporarily withhold payment of CDBG funds pending correction of the default <br />by Subrecipient; <br />251