(a) The corporation shall evaluate the investment activities of each participating investment entity in conformance with the agreements to be entered into between the corporation and the investment entity, in accordance with the criteria set forth in section 16-u of the act, and this rule and in accordance with other applicable law and regulations. Each investment entity will be required to provide quarterly and annual reports outlining the impact and effectiveness of the investments made, current status, leveraged funds, business revenue, numbers of jobs created, and other items as determined by corporation. These annual reports and additional reports as requested at the discretion of the corporation may be required to include:

(b) The corporation may conduct or request audits of the investment entities in order to ensure compliance with the provisions of section 16-u of the act, any regulations promulgated with respect thereto and agreements between the investment entities and the corporation of all aspects of the use of program funds and investment transactions.

(c) In the event that the corporation finds substantive noncompliance at any time, the corporation may terminate the investment entity's participation in the program. The agreements between the corporation and the investment entity shall provide that, upon termination of an investment entity's participation in the program, the investment entity shall return to the corporation, promptly after its demand thereof, all program funds held by the investment entity, and provide to the corporation, promptly after its demand thereof, an accounting of all program funds, including all currently outstanding investments that were made using program funds. Notwithstanding such termination, the investment entity shall remain liable to the corporation with respect to any unpaid amounts due from the investment entity pursuant to the terms of the agreements between the corporation and the investment entity. In the event that an investment entity's participation in the program is terminated, the corporation, in its discretion, may transfer to one or more of the other participating investment entities without an additional solicitation all or part of the award made to such investment entity.