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6 <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 parry. 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 a decision-making process or gain inside information with regard to <br /> such activities,may obtain a financial interest or benefit from a Grant-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 /> 3 <br />