The terminal function being used is a special one: SinglePFTF, which receives a PropositionalFunction. Then it answers whether any input state is a terminal state like this: is there any grounding of the provided PF in the state that evaluates to true? We gave it the AT propositional function, which operates on an agent object and location object. Therefore, it's asking "does there exist an agent (a) and location (l) object in the state such that AT(a, l) is true? If so it's terminal." Or in a more English-like fashion: if the agent is at *any* location, it is a terminal state.
So you're not specifying a terminating location, because the terminal function is defined so that *any* location counts as a terminating location.
Same idea for the reward function.
Make sense?
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