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Section 3 business is one that is owned by Section 3 residents, or employs Section 3 residents in full-time <br />positions, or subcontracts with businesses which provide economic opportunities to low-income persons: <br />3.6.2 The parties to this agreement will comply with the provisions of said Section 3 and <br />the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 <br />C.F.R. 135, and all applicable rules and orders of the Department issued thereunder. The parties to this <br />agreement certify and agree that they are under no contractual or other disability which would prevent them <br />from complying with these requirements. <br />3.6.3 Participant will send to each labor organization or representative of workers with <br />which it has a collective bargaining Agreement or other contract or understanding, if any, a notice advising the <br />said labor organization or workers' representative of the commitments under the Section 3 clause and shall <br />post copies of the notice in conspicuous places available to employees and applicants for employment or <br />training. <br />3.6.4 Participant will include this Section 3 clause in every subcontract for work in <br />connection with the project and will, at the direction of the applicant for or Participant of Federal financial <br />assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in <br />violation of regulations issued by the Secretary of Housing and Urban Development, 24 C.F.R. 135. <br />Participant will not subcontract with any subcontractor where it has notice or knowledge that the latter has <br />been found in violation of regulations under 24 C.F.R. 135 and will not let any subcontract unless the <br />subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of <br />these regulations. <br />3.6.5 Participant shall comply with other requirements described in the Equal Employment <br />Opportunity section in Exhibit F. <br />3.7 USE OF PROPERTY: A Participant may not change the use or planned use of any such <br />property (including the beneficiaries of such use) from that for which the acquisition or improvement was <br />made unless the Participant provides the City with reasonable notice of, and opportunity to comment on, <br />any proposed change. <br />ARTICLE IV <br />DEFAULT AND REMEDIES <br />4.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following events shall <br />constitute an event of default hereunder ("Event of Default"): <br />(a) Participant removes the Improvements from the Property or fails to maintain the <br />Improvements and the Property in good condition and repair in violation of Section 3,4. <br />(b) Any representation or warranty contained in this Agreement or any certificate <br />furnished in connection with the foregoing or in connection with any request for disbursement of Loan <br />Proceeds proves to have been false or misleading in any material adverse respect when made. <br />Fiscal Year 08-09 4 <br />