.23 Termination.

A. Termination for Cause. An agreement may be terminated for cause as provided for in §35A of the Maryland Department of Transportation's "General Provisions for Service Contracts" (1992), and in the provisions of this regulation.

B. Events of Default. An event of default includes:

(1) Failure of the contractor to maintain any of the services required by this chapter or as agreed upon in writing;

(2) Breach of security or confidentiality;

(3) Failure of the Administration to maintain its databases or data processing resources in a manner as to permit the contractor to maintain any of the services as agreed on; or

(4) Breach of any other material obligation or covenant of the agreement by any party.

C. Opportunity to Cure.

(1) Whenever an event of default occurs, the party asserting a default shall:

(a) Notify the defaulting party in writing of the occurrence of the event of default; and

(b) Describe with particularity the default and the steps necessary to cure the default.

(2) The defaulting party shall then have 30 days from the date of receipt of the written notice to cure the default in question.

D. Termination Upon Persistence of Uncured Default. If an event of default remains uncured without substantial justification for more than the required 30 days, the party asserting a default may, at its option, terminate the agreement upon written notice to the defaulting party.

E. Suspension in Event of Continuing Breach of Security or Confidentiality.

(1) The Administration may, upon 24 hours actual notice to a contractor, suspend operation of the program for a period not to exceed 15 days (the suspension period), if the Administration determines that:

(a) A breach of security or confidentiality has occurred with respect to information resident in the Administration's databases, which is attributable to the electronic system;

(b) The breach poses a substantial threat of breaches of security or confidentiality; and

(c) The breach cannot or is not likely to be remedied within a reasonable time by the contractor or the Administration exercising their powers, pursuant to their agreements, to suspend or terminate participation in the program by the participant.

(2) During any suspension period, the Administration shall cooperate fully with a contractor to identify or remedy any breaches.

(3) If, during the suspension period, the source of the breach is identified and provisions are made for remedying the breach, the:

(a) Suspension shall immediately terminate; and

(b) Operation of the program shall be restored promptly.

(4) The Administration may impose an additional 15-day suspension period, if a contractor has been unable to:

(a) Identify the source of the breach at issue; or

(b) Provide a means of remedying the breach.

(5) At the conclusion of the additional suspension period, the Administration may terminate an agreement if the condition triggering the breach remains unidentified or uncured.

F. Disposition of Equipment and Materials.

(1) A contractor and participant shall notify the Administration immediately of any theft or missing property related to the program.

(2) If an agreement is terminated:

(a) The Administration shall promptly return to the contractor, or afford it a reasonable opportunity to collect any and all equipment, manuals, diagrams, computer hardware and software, and any other items and materials relating to the program that were supplied by the contractor and not paid for by the Administration; and

(b) A contractor shall similarly return to the Administration any permanent registration plates, stickers, and any other property of the Administration that is in the contractor's possession, custody, or control.