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C. Subcontracts <br /> The Subrecipient will include this Section 3 clause in every subcontract <br /> and will take appropriate action pursuant to the subcontract upon a <br /> finding that the subcontractor is in violation of regulations issued by the <br /> City of Decatur. The Subrecipient will not subcontract with any <br /> subcontractor where it has notice or knowledge that the latter has been <br /> found in violation of regulations under 24 CFR 135 and will not let <br /> subcontract unless the subcontractor has first provided it with a <br /> preliminary statement of ability to comply with the requirements of these <br /> regulations. <br /> D. Conduct <br /> 1. Assignability <br /> The Subrecipient shall not assign or transfer any interest in this contract without <br /> the prior written consent of the City thereto; provided, however, that claims for <br /> money due or to become due to the Subrecipient from the City under this contract <br /> may be assigned to a bank, trust company, or other financial institution without <br /> such approval. Notice of any such assignment or transfer shall be furnished <br /> promptly to the City. <br /> 2. Hatch Act <br /> The Subrecipient agrees that neither funds provided, nor personnel employed <br /> under this contract, shall be in any way or to any extent engaged in the conduct of <br /> political activities in violation of Chapter 15 of Title V United States Code. <br /> 3. Conflict of Interest <br /> The Subrecipient agrees to abide by the provisions of 24 CFR 570.611 with <br /> respect to conflict of interest, and covenants that it presently has no financial <br /> interest and shall not acquire any financial interest, direct or indirect, which would <br /> conflict in any manner or degree with the performance of services required under <br /> this contract. The Subrecipient further covenants that in the performance of this <br /> contract no person having such a financial interest shall be employed or retained <br /> by the Subrecipient hereunder. These conflict of interest provisions apply to any <br /> person who is an employee, agent, consultant, officer, or elected official or <br /> appointed official of the City, or of any designated public agencies or <br /> Subrecipients which are receiving funds under the CDBG Entitlement program. <br /> The Subrecipient further agrees to provide the City with a list of its current Board <br /> members and notify the City in writing within five (5) business working days if, <br /> during the course of this contract, any changes in Board membership occurs. <br /> However, it would be to the benefit of the Subrecipient to notify the City in <br /> advance with names of potential persons being considered for any office or <br /> Subrecipient Agreement (Rev. 9/6/11) Page 15 of 19 <br />