400

374

The Borrower shall also maintain Chicle Property Damage Insurance with limits of not less than $10,000.

(7) Section 33. Sub-section (d) Use and Occupancy Insurance is revised to read: immediately upon the receipt of any funds acquired pursuant to the Loan Agreement, or immediately upon the occupancy of any portion of the Project or of any portion of the facilities of the Dormitory System to be established pursuant to the Loan Agreement, whichever occurs the first; and so long thereafter as the funds and/or investments in the "Dormitory System Bond and Interest Sinking Fund Account of 1963", as provided in the Loan Agreement, are less than the maximum Debt Service Reserve required by said provisions of the Loan Agreement, the Borrower shall procure and maintain Use and Occupancy Insurance on each building, the revenues of which are pledged to payment of the Bonds, in an amount sufficient to enable the Borrower to deposit in said Sinking Fund Account, out of the proceeds of such insurance, an amount equal to the sum that would normally have been available for deposit in such Account from the revenues of the damaged building during the time the damaged building is non-revenue-producing as a result of loss of use caused by the perils covered by Fire and Extended Coverage Insurance. Where a Trustee is to be or has been designated in connection with the Bonds, each such insurance policy shall be acceptable to the Trustee and shall contain a loss payable clause making any loss thereunder payable to the Trustee as its interest may appear."

(p) Section 27, Nondiscrimination, of the Terms and Conditions (CFA-250 dated 4-63) constituting a par! of the Loan Agreement is revised to provide as follows:

"Section 27, Nondiscrimination

(a) The Borrower shall require that there shall be no discrimination against any employee who is employed in carrying out the Project, or against any applicant for such employment, because of race, creed, or color or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

(b) The Borrower hereby agrees to the following conditions: (1) it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, paid for in whole or in part with funds obtained under the Loan Agreement, the provisions prescribed for Government contracts and Federally assisted construction contracts by Section 301 of Executive Order 10925, as amended; (2) it will assist and cooperate actively with the Housing and Home Finance Agency and the President's Committee on Equal employment Opportunity (the "Committee") in obtaining the compliance of contractors and subcontractors with said contract provisions and with the rules, regulations, and relevant orders of the Committee; (3) it will obtain and furnish to the Housing and Home Finance Agency and to the Committee such information as they may require for the supervision of such compliance; (4) it will enforce the obligations of contractors and subcontractors under such provisions, rules, regulations and orders; (5) it will carry out sanctions and penalties for violation of such obligations imposed upon contractors and subcontractors by the Committee or the Housing and Home Finance Agency; and (6) it will refrain from entering into any contract subject to this order, or extension or other modification of such a contract with a contractor debarred from Government contracts and Federally assisted construction contracts under Part III, Subpart D of Executive Order 10925, as amended, or who has not demonstrated his eligibility for such contracts as provided in Part III of Executive Order 10925, as amended; and (7) in the event the Borrower fails and refuses to comply with its undertakings the Borrower agrees that the Housing and Home Finance Agency may cancel, terminate or suspend in whole or in part the Loan Agreement, may refrain from extending any further assistance under any of its programs subject to Executive Order 11114 until satisfactory assurance of future compliance has been received from such Borrower, or may refer the case to the Department of Justice for appropriate legal proceedings."