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upon contractors and subcontractors by the administering agency <br />or the Secretary of Labor pursuant to Part Il, Subpart D of the <br />Executive order. In addition, the applicant agrees that if it fails or <br />refuses to comply with these undertakings, the administering <br />agency may take any or all of the following actions: Cancel, <br />terminate, or suspend in whole or in part this grant (contract, loan, <br />insurance, guarantee); refrain from extending any further assis- <br />tance to the applicant under the program with respect to which the <br />failure or refund occurred until satisfactory assurance of future <br />compliance has been received fromsucb applicant; andreferthe case <br />to the Department of Justice for appropriate legal proceedings. <br />Excerpt from HUD Regulations <br />200.410Definition of term "applicant". <br />(a) In multifamily housing transactions where controls over the <br />mortgagor are exercised by the Commissioner either through <br />the ownership of corporate stock or under the provisions of <br />a regulatory agreement, the term "applicant" as used in this <br />subpart shall mean the mortgagor. <br />(b) In transactions other than those specified in paragraph(a) of <br />this section, the term "applicant" as used in this subpart shail <br />mean the builder, dealer or contractor performing the con- <br />struction, repair or rehabilitation work for the mortgagor or <br />other borrower. <br />200.420Equal Opportunity Clause to be included in contracts and <br />subcontracts. <br />(a) The following equal opportunity clause shall be included in <br />each contract and subcontract which is not exempt:. <br />During the performance of this contract, the contractor agrees <br />as follows: <br />(1) The contractor will not discriminate against any em- <br />ployee or applicant for employment because of race, creed, <br />color, or national origin. The contractor will take affirmative <br />action to ensured that applicants are employed, and that <br />employees are treated during employment without regard to <br />their race, creed, color, or national origin. Such action shall <br />include, but not be limited to the following: employment, <br />upgrading, demotion or transfer; recruitment or recruitment <br />advertising; layoff or termination; rates of pay or other forms <br />of compensation-, and selection for training, including ap- <br />prenticeship. The contractor agrees to post in conspicuous <br />places, available to employees and applicants for employ- <br />ment, notices to be provided setting forth the provisions of <br />the nondiscrimination clause. <br />(2)The contractor will in all solicitations or advertisements for <br />employees placed by or on behalf of the contractor, state that all <br />qualified applicants will receive consideration for employment <br />without regard race, creed, color, or national origin. <br />(3) The contractor will send to each labor union or repre- <br />sentative of workers with which he has a collective bargain- <br />ing agreement or other contract or understanding, a notice, to <br />be provided, advising the said labor union or workers' repre- <br />sentative of the contractor's commitments under this section, <br />and shall post copies of the notices in conspicuous places <br />available to employees and applicants for employment. <br />(4) The contractor will comply with all provisions of Ex- <br />ecutive Order 10925 of March 6 1961, as amended, and of the <br />regulations, and relevant orders of the President's Commit- <br />tee on Equal Employment Opportunity created thereby. <br />(5) The contractor will furnish all information and reports <br />required by Executive Order 10925 of March 6, 1961, as <br />amended, and by the regulations, and orders of the said <br />Committee , or pursua.rtt thereto, and will permit access to his <br />books, records, and accounts by HUD and the Committee for <br />purposes of investigation to ascertain compliance with such <br />regulations, and orders. <br />(6) In the event of the contractor's non-compliance with <br />the nondiscrimination clause of this contract or with any of <br />the said regulations, or orders, this contract may be can- <br />celled, terminated or suspended in whole or in part and the <br />contractor may be declared ineligible for further Govern- <br />ment contracts or Federally -assisted construction contracts <br />in accordance with procedures authorized in Executive Order <br />10925 of March 6, 1961, as amende, and such other sanctions <br />may be imposed and remedies invoke s provided in the said <br />Executive Order or by regulations, or orderof the President's <br />Committee on Equal Employment Opportunity, or as other- <br />wise provided by law. <br />(7) The contractor will include the provisions of Para- <br />graphs(1) through (7) in every subcontract or purchase order <br />unless exempted by regulations, or orders of the President's <br />Committee on Equal Employment Opportunity issued pursu- <br />ant to Section 303 of Executive Order 10925 of March 6, <br />1961, as amended, so that such provisions will be binding <br />upon each subcontractor or vender. The contractor will take <br />such action with respect to any subcontract or purchase <br />orders as HUD may direct as a means of enforcing such <br />provisions, including sanctions for noncompliance: Provided, <br />however, that in the event the contractor becomes involved <br />in, or is threatened with, litigation with a subcontractor or <br />vender as a result of such direction by HUD, the contractor <br />may request the United States to enter into such litigation to <br />protect the interests of the United States. <br />(b) Except in subcontracts for the performance of construction <br />work at the site of construction, the clause is not required to <br />be inserted in subcontracts below the second tier. Subcontracts <br />may incorporate by referenced to the equal opportunity clause. <br />200.425Modification in and exemptions from the regulations in <br />this subpart. <br />(a) The following transactions and contracts are exempt from the <br />regulations in this subpart: <br />(1) Loans, mortgages, contracts and subcontracts not ex- <br />ceeding $10,000. <br />(2) Contract and subcontracts not exceeding $100,000 for <br />standard commercial supplies or raw material; <br />(3)Contracts and subcontracts under which work is to be or has <br />been perfonned outside the United States and where no recruit- <br />ment of workers within the United States in involved. To the <br />extent that work pursuant to such contracts is done within the <br />Untied States, the equal opportunity clause shall be applicable; <br />(4) Contracts for the sale of Government property where <br />no appreciable amount of work is involved; and <br />(5) Contracts and subcontracts for an indefinite quantity <br />which are not to extend for ore than one year if the purchaser <br />determines that the amounts to be ordered 'under any such <br />contract or subcontract are notreasonably expected to exceed <br />$100,000 in the case of contracts or subcontracts for standard <br />commercial supplies and raw materials, or $10,000 in the <br />case of all other contracts and subcontracts. <br />form HUD -92010 (1/82) <br />VA form 26-421 <br />70 <br />