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financial or other interest in the firm or person selected to perform the subcontract. Contractor shall <br />comply with Chapter 171, Local Government Code. <br />B. In all cases not governed by Subsection (A) of this Section, no persons specified in subsection (C) <br />of this Section who exercise or have exercised any functions or responsibilities with respect to the <br />activities assisted under this contract or any other CDBG contract or who are in a position to <br />participate in a decision making process or gain inside information with regard to such activities, may <br />obtain a financial interest or benefit from the activity, or have an interest or benefit from the activity, or <br />have any interest in any contract, subcontract or agreement with respect thereto, or the proceeds <br />thereunder, either for themselves or those with whom they have family or business ties during their <br />tenure or for one year thereafter. <br />C. The conflict of interest provisions of Subsection (B) apply to any person who is an employee, <br />agent, consultant, officer, or elected official or appointed official of Contractor or of a subcontractor of <br />Contractor. <br />D. Contractor shall include the substance of this section in all subcontracts. <br />SECTION 13. NONDISCRIMINATION AND SECTARIAN ACTIVITY <br />A. Contractor shall ensure that no person shall on the ground of race, color, national origin, religion, <br />sex, age, or handicap be excluded from participation in, be denied the benefits of, or be subjected to <br />discrimination under or be denied access to any program or activity funded in whole or in part with <br />funds made available under this contract. <br />B. None of the performances rendered by Contractor under this contract shall involve, and no portion <br />of the funds received by Contractor under this contract, shall be used in support of any sectarian or <br />religious activity, nor shall any facilities used in the performance of this contract be used for sectarian <br />instruction or as a place of religious worship. Contractor shall comply with regulations promulgated <br />by the U.S. Department of Housing and Urban Development at 24 C.F.R. Sec. 570.2000). <br />SECTION 14. LEGAL AUTHORITY <br />A. Contractor assures and guarantees that Contractor possesses the legal authority to enter into this <br />contract, receive funds authorized by this contract, and to perform the services Contractor has <br />obligated itself to perform hereunder. <br />B. The person or persons signing and executing this contract on behalf of Contractor, or representing <br />themselves as signing and executing this contract on behalf of Contractor, do hereby warrant and <br />guarantee that he, she or they have been duly authorized by Contractor to execute this contract on <br />behalf of Contractor and to validly and legally bind Contractor to all terms, performances, and <br />provisions herein set forth. <br />C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the <br />legal authority of either Contractor or the person signing this contract to enter into this contract or to <br />render performances hereunder. Contractor is liable to Department for any money it has received <br />from Department for performance of the provisions of this contract, if Department has suspended or <br />terminated this contract for reasons enumerated in this Section 14. <br />SECTION 15. LITIGATION AND CLAIMS <br />Contractor shall give Department immediate notice in writing of 1) any action, including any <br />proceeding before an administrative agency, filed against Contractor arising out the performance of <br />Page 6 of 12 <br />