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<br />of the notice in conspicuous places available to employees and applicants for employment or <br />training. <br /> <br /> (3) Subcontracts. The Subrecipient will include this Section 3 <br />clause in every subcontract and will take appropriate action pursuant to the subcontract upon <br />a finding that the sub-Subrecipient is in violation of Regulations issued by the grantor agency. <br />The Subrecipient will not subcontract with any sub-Subrecipient where it has notice of <br />knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will <br />not let any subcontract unless the sub-Subrecipient has first provided it with a preliminary <br />statement of ability to comply with the requirements of these regulations. <br /> <br />2.6 Environmental Requirements. Lead Based Paint. In accordance with 24 <br />CFR Part 570.608, the Subrecipient shall be prohibited from using lead-based paint in <br />residential structures rehabilitated with Community Development Block Grant funds. Lead- <br />based paint is any paint containing more than five-tenths of one percent (5/10 of 1%) lead by <br />weight in the total non-volatile content of liquid paints or in the dried film of paint already <br />applied. <br /> <br /> 2.7 Further Responsibilities of Parties. Both parties agree to use reasonable <br />care and diligence to perform their respective obligations under this Agreement. Both parties <br />agree to act in good faith to execute all instruments, prepare all documents, and take all actions <br />as may be reasonably necessary to carry out the purposes of this Agreement. Unless <br />hereafter specified, neither party shall be responsible for the obligations of the other. <br /> <br />3.0 DISBURSEMENT OF FUNDS <br /> <br />3.1 Maximum Amount of CDBG Funds. The maximum amount of CDBG funds <br />to be provided to Subrecipient is $25,000 [TWENTY-FIVE THOUSAND DOLLARS] in the form <br />of a grant. Subrecipient hereby acknowledges that the City cannot guarantee that the CDBG <br />funds will be received from HUD. The City's obligation to fund the work hereunder is limited <br />to the availability of CDBG funds from HUD. If the CDBG funds are not forthcoming from HUD <br />for any reason, the City shall not have any obligation to fund the work through any other source <br />of funds. <br /> <br />3.2 Maximum Amount of General Funds. Not applicable. <br /> <br />3.3 Termination of Fund Obligation. The services to be provided under this <br />Agreement may be terminated without cause at any point in time in the sole and exclusive <br />discretion of City. In this event, City shall compensate the Subrecipient for all outstanding <br />costs incurred for work satisfactorily completed as of the date of written notice thereof. <br />Subrecipient shall maintain adequate logs and timesheets in order to verify costs incurred to <br />date. <br /> <br />3.4 Method of Payment- CDBG Funds. Unless otherwise specified in Exhibit <br />"A", not more frequently than monthly and at least quarterly, Subrecipient may submit to the <br />Agreement Officer an invoice, in a form acceptable to the City, setting forth the amounts <br />actually expended by Subrecipient for the project; provided that said expenses are included in <br />the budget (Exhibit "B") and performance standards have been met. Said invoice shall, at a <br />minimum, set forth each budget category for which reimbursement is sought, a description of <br />the expense, the total budgeted amount for the category, the amount requested to be <br />reimbursed for each budget category, and the total amount expended for each budget category <br />to date. Said invoice shall be accompanied with such additional supporting information as <br />requested by the City, including, but not limited to, paid receipts for each expense. To the <br />137