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this contract certify and agree that they are under no c ontractual or other disability that would prevent them from complying with the e provision s. 3. The Subrecipient will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under this Section 3 clause and will post copies of the notice in conspicuous places available to employees and applicants for employment or training. 4. The Subrecipient will include this Section 3 clause in every subcontract for work in connection with the project and will , at the direction of the applicant, or recipient of fed eral .financial assis tance, take ·ap p ropria te acti0 n pursuant to the s ub contrnct upo n a fi nding t hat the u bront.ractor i in v io lation of regul ations issued b y t he ecretary of HUD 24 CFR P art 13 5. The ubrecip ie11t will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract, unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD and COMMERCE issued hereunder prior to the execution of the contract, will be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assi stan ce its success.ors, and assign •. Fail ure to fulfi Jl the-se r qu ir rn ent will subj ect th appl icant or reci pient, it consultant and sub contrac tors, its suceessots and as si gned to th o .e sancti oi;:i,s specifi ed by the grant or loan agreement or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Paii 135. C. Conduct 1. AssiguabHity The Subrecipient will not assign or transfer any interest in this Agreement without the prior written consent of the Local Government thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Local Government under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer will be furnished promptly to the Local Government and COMMERCE. 2 . Con flict of Interest No member of the Local Government's governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the project, will have any personal financial interest, direct or indirect, in this agreement; and the Subrecipient will take appropriate steps to assure compliance. The Subrecipient agrees to abide by the provisions of2 CFR 200.318 and 24 CFR 570.611 , which includes maintaining a written code or standards of conduct that will govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. Agreement 2018-2019 CDBG-SR Page 9 of 12