The Department shall enter into a grant agreement with each grantee. The Department may establish other terms and conditions in the grant agreement, and any other documents related to the grant, which the Department considers reasonable and necessary to accomplish the objectives of the Program or to ensure compliance with all federal, State, and local laws, ordinances, and regulations, and departmental programs and policies. Maximum Grant Amount. A grant for a residential building may not exceed $25,000. The Director or Deputy Director may, in their discretion, approve increases in the maximum grant amount to cover exceptional circumstances in an amount determined to be reasonable but not exceeding $60,000. The Department may require that the grant be secured by an instrument recorded in the land records of the county in which the property is located. Insurance. A grantee shall provide evidence that fire and extended coverage insurance are in effect for 1 year from the date of closing for not less than the replacement value of the home. If applicable, a grantee shall provide evidence that flood insurance on the home is in effect for 1 year based on the current Federal Emergency Management Administration’s requirements. Appraisals. At the discretion of the Program Director or the local administrator, a grantee may be required to obtain an appraisal in a form and manner acceptable to the Department from an acceptable independent fee appraiser showing a building’s value before and after the proposed modification. Default. Remedies upon grant default shall be exercised in the discretion of the Department and may be one or more of the remedies provided for in the grant documents or by law, which may include: Repaying all or a portion of the grant; and Any other legal action which protects the Department’s interests.