Sec. 152.505 - Termination for cause.
(a) If the sponsor or planning agency fails to comply with the conditions of the grant, the FAA may, by written notice to the sponsor or planning agency, terminate the grant in whole, or in part.
(b) The notice of termination will contain --
(1) The reasons for the termination, and
(2) The effective date of termination.
(c) After receipt of the notice of termination, the sponsor or planning agency may not incur additional obligations of grant funds.
(d) Payments to be made to the sponsor or planning agency, or recoveries of payments by the FAA, under the grant shall be in accordance with the legal rights and liabilities of the parties.