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Section 12. Record Keeping <br />The State shall maintain a complete file of all records, documents, communications, and other <br />written materials, which pertain to the costs incurred under this contract. The State shall maintain <br />such records for a period of three (3) years after the date of termination of this contract or final <br />payment hereunder, whichever is later, or for such further period as may be necessary to resolve any <br />matters which may be pending. The State shall make such materials available for inspection at all <br />reasonable times and shall permit duly authorized agents and employees of the Local Agency and <br />FHWA to inspect the Project and to inspect, review and audit the Project records. <br />Section 13. Termination Provisions <br />This contract may be terminated as follows: <br />A. Termination for Convenience. The State may terminate this contract at any time the State <br />determines that the purposes of the distribution of moneys under the contract would no longer be <br />served by completion of the Project. The State shall effect such termination by giving written notice <br />of termination to the Local Agency and specifying the effective date thereof, at least twenty (20) <br />days before the effective date of such termination. <br />B. Termination for Cause. If, through any cause, the Local Agency shall fail to fulfill, in a timely <br />and proper manner, its obligations under this contract, or if the Local Agency shall violate any of the <br />covenants, agreements, or stipulations of this contract, the State shall thereupon have the right to <br />terminate this contract for cause by giving written notice to the Local Agency of its intent to <br />terminate and at least ten (10) days opportunity to cure the default or show cause why termination is <br />otherwise not appropriate. In the event of termination, all finished or unfinished documents, data, <br />studies, surveys, drawings, maps, models, photographs and reports or other material prepared by the <br />Local Agency under this contract shall, at the option of the State, become its property, and the Local <br />Agency shall be entitled to receive just and equitable compensation for any services and supplies <br />delivered and accepted. The Local Agency shall be obligated to return any payments advanced <br />under the provisions of this contract. <br />Notwithstanding the above, the Local Agency shall not be relieved of liability to the State for any <br />damages sustained by the State by virtue of any breach of the contract by the Local Agency, and the <br />State may withhold payment to the Local Agency for the purposes of mitigating its damages until <br />such time as the exact amount of damages due to the State from the Local Agency is determined. <br />If after such termination it is determined, for any reason, that the Local Agency was not in default or <br />that the Local Agency's action/inaction was excusable, such termination shall be treated as a <br />termination for convenience, and the rights and obligations of the parties shall be the same as if the <br />contract had been terminated for convenience, as described herein. <br />Section 14. Legal Authority <br />The Local Agency warrants that it possesses the legal authority to enter into this contract and that it <br />Page 8 of 12 <br />