266Terms and conditions relating to grants

266  Terms and conditions relating to grants

 (1) The terms and conditions on which financial assistance is granted under section 264 or 265 are the following:

 (a) the statutory funding conditions;

 (b) any other terms and conditions set out in a written agreement (the funding agreement) between the Commonwealth and the grant recipient.

Note 1: For the statutory funding conditions, see section 267.

Note 2: See also section 270 (constitutional limits).

 (2) The grant recipient must comply with the statutory funding conditions and the terms and conditions set out in the funding agreement.

Terms and conditions in funding agreement

 (3) The terms and conditions set out in the funding agreement:

 (a) must provide for the circumstances in which the grant recipient must repay amounts to the Commonwealth; and

 (b) may deal with matters covered by the statutory funding conditions; and

 (c) may deal with the consequences for a breach of a term or condition of the funding agreement.

 (4) Subsection (3) does not limit the terms and conditions that may be set out in the funding agreement.

 (5) To avoid doubt, if a term or condition included in the funding agreement is inconsistent with a provision of this Act, the provision prevails and the term or condition, to the extent of the inconsistency, is of no effect.

Funding agreement to be entered into by System Governor

 (6) The funding agreement is to be entered into by the System Governor on behalf of the Commonwealth.