(a) If a project owner has received State assistance for equipment which the corporation deems is not an allowable cost of an eligible project, the corporation shall have the right to require the owner to reimburse the corporation for the amount of misapplied funds received.

(b) If the corporation determines that the project or the project owner is not in compliance with Federal, State or local laws, rules, regulations or guidance, including any permit, license or other governmental approval relating to the project financed in whole or in part with State assistance, or any term of the State assistance contract, then, following written notice to the project owner, the corporation may withhold disbursement of State assistance until such noncompliance is remedied, and may commence any action available at law or in equity to effect the return to the corporation of State assistance paid to, or on behalf of, the project owner.

(c) Nothing in this section shall be construed to limit the right of the corporation to commence any action at law or in equity, including without limitation any action for breach of contract, against a project owner that fails to carry out its obligations under this Part, or the State assistance contract.