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5 <br />Recipient shall likewise ensure that all subrecipient contracts regarding Grant funds or <br />relating to the Program include all required contractual elements in order to be in <br />compliance with all Federal, State and local laws, including but not limited to the provisions <br />contained in 24 C.F.R. § 570.503, 24 C.F.R. § 85.37, and other provisions described <br />throughout this Agreement, where applicable. In any event, the Recipient is liable to DOC <br />and HUD for any improper expenditures, damage, loss or harm resulting from the failure of <br />any person or entity to comply with any applicable law, rule, regulation or requirement <br />regarding the Grant funds and/or the Program, including but not limited to an act or <br />omission by a subrecipient or other third party. The Recipient agrees to periodically and <br />rigorously monitor and audit its subrecipients and other third parties to ensure compliance <br />with all applicable requirements. <br />Any subcontracts or subrecipient agreements entered into by the Recipient with Grant funds <br />shall be subject to all terms and conditions of this Agreement. Payment of all subcontractors <br />and subrecipients shall be the sole responsibility of the Recipient, and DOC shall not be <br />obligated to pay for any work performed by any subcontractor or subrecipient. The <br />Recipient shall be responsible for the performance of all subcontractors and subrecipients <br />and shall not be relieved of any of the duties and responsibilities of this Agreement as a <br />result of entering into subcontracts or subrecipient agreements. <br />5. Changes to Agreement. Recipient agrees that DOC may supplement or modify this <br />. Agreement as may be necessary to implement additional.or modified Federal or State <br />guidance regarding implementation of the CDBG program. <br />6. Conflict of Interest. Recipient agrees to comply with all applicable conflict of <br />interest provisions, including but not limited to those found at 4 N.C.A.C. 19 L .0908 <br />and .0914, N.C. Gen. Stat. § 14-234, 24 C.F.R. § 85.36, 24 C.F.R. § 570.489 (g) and <br />(h), and 24 C.F.R. § 570.611, where applicable, copies of which may be obtained <br />from DOC. <br />Except for eligible administrative or personnel costs, the general rule is that no persons <br />described in the following sentence who exercise or have exercised any functions or <br />responsibilities with respect to grant activities assisted under this Agreement or who are in a <br />position to participate in adecision-making process or gain inside information with regard to <br />such activities, may obtain a financial interest or benefit from aGrant-assisted.activity, or <br />have an interest or benefit from the activity, or have an interest in any contract, subcontract <br />or agreement with respect thereto, or the proceeds there under, either for themselves or those <br />with whom they have family or business ties, during their tenure or for one year thereafter. <br />The conflict of interest summary in the sentence above generally applies to any person who <br />is an employee, agent, consultant, officer, or elected official or appointed official of the state, <br />or of a unit of general local government, or of any designated public agencies, or Recipient <br />or applicable third parties which are receiving CDBG grant funds. <br />Recipient agrees to include these same prohibitions in all such contracts or subcontracts with <br />any subrecipients or other third parties relating to the Program. <br />