§ 558. Authority of agency; other terms and contracts. 1. An agency is authorized to enter into agreement with the state to receive such state capital grants to assist such agency to establish and carry out one or more programs of urban renewal.

2. In every contract for a capital grant by the state, the acts constituting a substantial breach of the provisions set forth therein shall be defined in such terms as the commissioner shall deem to be in the public interest and as are consistent with the provisions of this article and the purposes of the program for which such aid is sought.

3. Every such contract may contain such other terms, covenants and conditions as shall be agreed upon and as are consistent with the provisions of this article and the purposes of the urban renewal program.