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A. If lessee fails to cure the default within the prescribed period, the Director may:

1. Cancel the lease pursuant to the lease terms or this Act;

2. Grant an extension of time in which to cure the default;

3. Pursue other remedies, including execution of bonds or collection of insurance proceeds;

4. Pursue any combination of remedies listed above; or

5. Pursue any other remedy set forth in the lease management plan or policy.

B. If the Director fails to exercise any right, power, or remedy accruing under a lease or this Act, such failure shall not impair such right, power, or remedy, nor shall it be construed to be a waiver of or acquiescence in a breach of or default under the lease.

C. If the Director elects to cancel a lease, the Director shall send a notice of cancellation to lessee in accordance with the terms of the lease. The dated cancellation letter must be sent to lessee by certified mail, return receipt requested. The cancellation letter shall:

1. Explain the grounds for cancellation;

2. Notify lessee of unpaid amounts, interest charges, late payment penalties, or other amounts due under the lease;

3. Notify lessee of its right to appeal; and

4. Order lessee to vacate the premises within thirty (30) days of mailing of the cancellation letter, if an appeal is not filed by that time.

D. A notice of cancellation of the lease shall become effective thirty-one (31) days after its mailing date. The filing of an appeal shall not change the effective date of the cancellation but will allow the lessee continued occupancy during the pendency of the appeal. Pending the outcome of an appeal, lessee must make all required payments and comply with all the terms of the lease.

E. If the Director elects to grant an extension of time in which to cure a default, lessee shall proceed diligently to perform and complete the corrective actions within the time extension period. ONCA 17-01, eff. Dec. 9, 2016.