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Authority <br />P. Violation of Terms and Conditions. SUBRECIPIENT agrees that if <br />SUBRECIPIENT violates any of the terms and conditions of this Agreement or any prior <br />Agreement whereby CDBG funds were received by SUBRECIPIENT, or if SUBRECIPIENT <br />reports inaccurately, or if on audit there is a disallowance of certain expenditures, SUBRECIPIENT <br />agrees to remedy the acts or omissions causing the disallowance and repay CITY all amounts spent <br />in violation thereof. If SUBRECIPIENT engaged in fraudulent activity to obtain and/or justify <br />expenditure of the CDBG FUNDS granted hereunder, SUBRECIPIENT shall be required to <br />reimburse the CITY of all such funds that were obtained /spent under fraudulent circumstances. <br />Q. Equiirment. SUBRECIPIENT agrees not to use the CDBG FUNDS for the <br />purchase of equipment. <br />R. Prohibited Use. SUBRECIPIENT hereby certifies and agrees that it will not use the <br />CDBG FUNDS provided through this Agreement to pay for entertainment, meals or gifts. <br />S. Lobbying. SUBRECIPIENT certifies that it will comply with federal law <br />(31 U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated <br />funds may be expended by the recipient of a federal contract, grant, loan or cooperative agreement <br />to pay any person for influencing or attempting to influence an officer or employee of any agency, <br />Member of Congress, or an officer or employee of a Member of Congress in connection with <br />awarding of any federal contract, the making of any federal grant or loan, entering into any <br />cooperative agreement and the extension, renewal, amendment or modification of any federal <br />contract, grant, loan or cooperative agreement. SUBRECIPIENT shall sign a certification to that <br />effect in a form as set forth in "Exhibit C," attached hereto and by this reference incorporated <br />herein. SUBRECIPIENT shall submit said signed certification to CITY prior to performing any of <br />its obligations under this Agreement and prior to any obligation arising on the part of CITY to pay <br />any sums to SUBRECIPIENT under the terms and conditions of this Agreement. <br />If any fiends other than Federal appropriated funds have been paid or will be paid to any <br />person for influencing or attempting to influence an officer or employee of any agency, a Member <br />of Congress, an officer or employee of Congress, or an employee of a Member of Congress in <br />connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall <br />complete and submit a "Disclosure 'Form to Report Lobbying," in accordance with its instructions <br />(see C -1). <br />T. Financial Interest. SUBRECIPIENT agrees that except for the use of the CDBG <br />FUNDS to pay salaries and other related administrative or personnel costs, no persons who exercise <br />or have exercised any function with respect to CDBG activities assisted under the terns of this <br />Agreement, or who are in a position to participate in a decision - making process or gain inside <br />information with regard to such activities, may obtain a financial interest or benefit from a CDBG- <br />assisted activity of SUBRECIPIENT, either for themselves or those with whom they have family or <br />business ties, during their tenure or for one year thereafter. This prohibition applies to any person <br />who is an employee, agent, consultant, officer, or elected or appointed official of CITY, or of any <br />designated public agencies, or the SUBRECIPIENT. <br />953911.1 <br />6 <br />