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<br />(7) ~\C contractor will include the,portion
<br />of the sentence ~edintely preceding Paragraph
<br />(1) and the provisions of Para¡;raphs (1) through
<br />(7) in every.subcontrac~or purchase order unless
<br />, exempted by the rules, rebulations, or orders of
<br />'tbe Secretary of Labor is&ued pursuant to Section
<br />204 of Executive Order No. 11246 of September 24.
<br />1965, so that such. provisions will be binding 'upon
<br />eacb subcontractor or vendor. The contractor will
<br />take such action with respect to any subcontract
<br />or'purcbase order as tbe Government may direct as
<br />. ~ns of enforcing such provisions including.
<br />88nct1ons for noncompliance: Provided. howeveX\,'
<br />, that in the event a contractor becomes involved in,
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<br />or is threatened with. litigation with a sub-
<br />contractor or vendor as a result of such direction
<br />bf the Government. the contractor may request ,the
<br />. United States to enter into such litigation to
<br />protect the interests ot the 1,Jniteci States."
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<br />(b) The Local Authority agrees ~r.at it will assist. and cooperate
<br />actively with the Government'" and the Secretary of Labor in obtaining
<br />tbe compliance of contractors and subcontractors with the Equal
<br />Opportunity clause and the rules, regulations, and relevant orders
<br />of the. Secretary of Labor, that it will furnish the Gov~~~ent
<br />and the Secretary of Labor such information as they may require
<br />
<br />for tbe supervision of such 'compliance, and tbat it ~~ll otherwise
<br />.s.1st the Government in tbe dischQrge of the Government I s primary
<br />responsibility for securing compliance.' , '
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<br />(c) The Local Authority further agrees that it will refrain" --,
<br />.from entering into any contract or contract modification subject
<br />to Exe~utive Order No. 11246 of September 24, 1965, with a contractor
<br />debarred from, or w~o has not demonstrated eligibility for, Government
<br />contracts and Federally assisted construction contracts pursuant
<br />to the F~ecutive Order and will carry out such sanctions and penalties
<br />for violation of the Equal OPp,?rtunity clause as may be iI:1posed .
<br />, upon eontractors and subcontractors by the Government or the Secretary
<br />of Labor pursuant to Part II, Subpart D of the Executiv~ Order.' :
<br />
<br />., 1.10 :Expeditious Cauvin~ Out ot]'roject. The L~.cal Authority
<br />.hall proceed expeditiously with the Project, If the Local Authority
<br />fails to proceed expeditiously, and no Asre~~ent with the Ow~er
<br />bas yet been entered into, the Gover~ent by notice to the Local
<br />, Authority, may terminate or reducå its obligation hereunder with
<br />.respéet to the Project.' If an Agre~~ent has been entered into,
<br />aDd the ~cal Authority or the Owner,is not proceeding expeditiously
<br />with the Project, the Government'will take appropriate action,
<br />,1ncluding the Govermental action provided for in the Agrecment.
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<br />1.11 l!!!ure of Local Authority to Comuly with Contract.
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<br />(a) In the event'pi failure of the Local Authority to eomply
<br />'witb the Contract with the Owner, or if such Contract is held to
<br />be void, voidable or ultra vires, or if the power or right of the
<br />Local Authority to enter into such Contract is drawn into question
<br />1n any legal proceeding, or'if the Local Authority asserts or claims
<br />that such Agreement or Contract is not binding upon, the Local Authority
<br />for any such r~ason. the occurrence of any such event, if the Owner
<br />18 not in default, shall constitute a Substantial Default hereunder.
<br />In such case, the Government will assume the Local Author5,ty I s
<br />rights and obligations under such Contract, and the Government
<br />sball, (or the duration of such Contract, continue to pay Annual
<br />Contributions for the purpose of making'housing assistance payments
<br />with respect to dwelling units und'er such Contract, shall perform
<br />tbe'obligations and enforce the ri¡:hts of th~ Local Authority,
<br />and shall exercise such other powers as the Government may have
<br />, to cure 'the Default. '
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<br />, (b) All rights and obligations of' the Local
<br />b"tbe Government will be returned as constituted
<br />
<br />Authority assumed
<br />at thr. time of
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