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this Sub- rant Aueement). If the "State Share" is not appropriated by Legislature the <br /> SUB-GRANTEE shall then be responsible for this amount. <br /> • 3. The total obligation of the STATE for allocation and reimbursement of federal (FEMA) <br /> funds for all compensation and reimbursement to SUB-GRANTEE shall not exceed the <br /> amounts stated in Exhibit III item 9, lines a. and g. of this Sub-grant Agreement. <br /> 4. If FEMA charges the STATE interest for an apparent cash surplus resulting from the <br /> failure of the SUB-GRANTEE to submit invoices as required under Clause II, Section B. <br /> of this Sub-grant Agreement,the SUB-GRANTEE will reimburse the STATE for any <br /> interest paid by the STATE as a result of said failure. Reimbursement of interest <br /> payments by the SUB-GRANTEE to the STATE shall not be reimbursable expenses <br /> under this agreement. <br /> B. Terms for Reimbursement <br /> 1. Non-Duplication of Programs. Federal HMGP funds cannot be used as a substitute or <br /> replacement to fund projects or programs that are available under other federal <br /> authorities, except under limited circumstances in which there are extraordinary threats to <br /> lives,public health or safety or improved property. <br /> 2. Federal assistance will be made available by the STATE,within the limits of funds <br /> available from Congressional appropriations for such purposes, in accordance with the <br /> Stafford Act, Executive Orders 12148 and 12673, and applicable regulations found in <br /> Title 44 of the Code of Federal Regulations (CFR), as amended, and currently applicable <br /> handbooks. <br /> 3. The SUB-GRANTEE shall not begin work on its HMGP project, described in Exhibit III <br /> of this Sub-grant Agreement, until such date as all signatures are obtained by the STATE, <br /> pursuant to Minnesota Statute 16C.05, Subd. 2. Project costs that are incurred prior to the <br /> execution of this Sub-grant Agreement may not, depending on their nature, prove eligible <br /> for reimbursement. <br /> 4. The STATE may make a partial payment of FEMA's share of the cost of an approved <br /> hazard mitigation project, from the amount stated in Exhibit III, page 2, item 9a of this <br /> Sub-grant Agreement if the SUB-GRANTEE requests and is approved the partial <br /> payment by the STATE. (If applicable) The STATE's Share, as stated in Exhibit III,page <br /> 2, item 9b of this Sub-grant Agreement will not be provided until the project and work is <br /> completed and if STATE's share is appropriated by the Minnesota State Legislature. _ <br /> a. A partial payment to a SUB-GRANTEE will be based on expenditures that can be <br /> documented; ensuring that the remaining work to be completed is well within the <br /> dollar amount of the approved project. <br /> • <br /> -6- <br />