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pursuant to STATE fiscal rules. <br />5. Waiver. The waiver of any breach of a term of this contract shall not be construed as a waiver of <br />any other term, or of any subsequent breach of the same term. <br />6. Eligible expenses. PROJECT costs eligible for financing by the STATE shall be limited to the cost of <br />the following items: <br />a. Preparing final designs and specifications for the PROJECT. <br />b. Preparing bid and construction contract documents. <br />c. Preparing environmental assessment or environmental impact statements, and otherwise <br />complying with the Federal National Environmental Policy Act. <br />d. Complying with all federal, state, and local regulatory requirements, including the obtaining of all <br />required permits. <br />e. Land and water rights acquisitions needed for the PROJECT, including the necessary appraisals <br />and evaluations. <br />f. Fish and wildlife mitigation measures required by federal, state, or local laws and regulations. <br />g. Actual construction as called for in the design docu a in change orders approved by the <br />STATE, the BORROWER, the CONSULTANT and t T N FIRM. <br />h. Engineering services for construction management, incI d' design and construction <br />management for STATE- approved chang <br />i. Legal services for reviewing engineering 'c s c tracts, reviewing this contract, reviewing <br />construction contract documents, and for complying with all federal, state, and local regulatory <br />requirements. Legal services must be approved in advance by the STATE in writing to be <br />eligible for financing by the STATE. <br />7. STATE may release contract at its option. In its sole discretion, the STATE may at any time give <br />any consent, deferment, subordination, release, satisfaction, or termination of any or all of the <br />BORROWER'S obligations under this contract, with valuable consideration, upon such terms and <br />conditions as the STATE may determine to be: <br />a. advisable to further the purposes of this contract or to protect the STATE'S financial interest <br />therein, and <br />b. consistent with both the statutory purposes of this contract and the limitations of the statutory <br />authority under which it is made. <br />8. Casualty and eminent domain. If, at any time, during the term of this contract, (a) the <br />BORROWER'S PROJECT facilities, including buildings, or any portion thereof, are damaged or <br />destroyed, in whole or in part, by fire or other casualty, or (b) title to or use of the PROJECT facilities <br />or any part thereof shall be taken under the exercise of the power of eminent domain, the <br />Town of Morrison Page 9 of 13 <br />