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<br /> (d) The contractor will include this Section 3 clause in every <br /> subcontract for work in connection with the project and will, at the <br /> direction of the applicant for or recipient of Federal financial <br /> assistance, take appropriate action pursuant to the subcontract upon <br /> a finding that the subcontractor is in violation of regulations <br /> issued by the Secretary of Housing and Urban Development, 24 C.F.R. <br /> Part 135. The contractor will not subcontract with any subcontractor <br /> where it has notice or knowledge that the latter has been found in <br /> violation of regulations under 24 C.F.R. Part 135 and will not let <br /> any subcontract unless the subcontractor has first provided it with a <br /> preliminary statement of ability to comply with the requirements of <br /> these regulations. <br /> (e) Compliance with the provisions of Section 3, the regulations set <br /> forth in 24 C.F.R. Part 135, and all applicable rules and orders of <br /> the Department issued hereunder prior to the execution of the <br /> contract. shall be a condition of the federal financial assistance <br /> provided to the project, binding upon the applicant or recipient for <br /> such assistance, its successors and assigns. Failure to fulfill <br /> these requirements shall subject the applicant or recipient. its <br /> contractors and subcontractors, its successors and assigns to those <br /> sanctions specified by the grant or loan agreement or contract <br /> through which federal assistance is provided, and to such sanctions <br /> as are specified by 24 C.F.R. Part 135. <br /> 15. Section 503 Handicapped (if $2.500 or Over) Affirmative Action for <br /> Handicapped Workers <br /> (a) The contractor will not discriminate against any employee or <br /> applicant for employment because of physical or mental handicap in <br /> regard to any position for which the employee or applicant for <br /> employment is qualified. The contractor agrees to take affirmative <br /> action to employ, advance in employment and otherwise treat qualified <br /> handicapped individuals without discrimination based upon their <br /> physical or mental handicap in all employment practices such as the <br /> following: Employment. upgrading, demotion or transfer. recruitment, <br /> advertising, layoff or termination. rates of payor other forms of <br /> compensation. and selection for training, including apprenticeship. <br /> (b) The contractor agrees to comply with the rules, regulations, and <br /> relevant orders of the Secretary of Labor issued pursuant to the Act. <br /> (c) In the event of the contractor's non-compliance with the requirements <br /> of this clause, actions for non-compliance may be taken in accordance <br /> with the rules, regulations, and relevant orders of the Secretary of <br /> Labor issued pursuant to the Act. <br /> Cd) The contractor agrees to post in conspicuous places, available to <br /> employees and applicants for employment, notices in a form to be <br /> prescribed by the Director, provided by or through the contracting <br /> officer. Such notices shall state the contractor1s obligation under <br /> the law to take affirmative action to employ and advance in <br /> employment qualified handicapped employees and applicants for <br /> employment. and the rights of applicants and employees. <br /> Page 5 of 6 <br />