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Section 20. Insurance During Construction. The borrower shall require
that each of its contractors and all subcontractors shall maintain during the
life of his contract workmen's Compensation Insurance, Public Liability and
Property Damage Insurance in amounts and on terms satisfactory to the
Government. Until the project is completed and accepted by the borrower,
the borrower is required to maintain Builders Risk Insurance (fire and
extended coverage) on a 100 percent basis (completed value form) on the
insurable portion of the project for the benefit of the borrower, the prime
contractor, and all subcontractors, as their interests may appear.

Section 21. (a) Wage Rates: Upon receipt of the list of wage rates determined
by the Secretary of Labor in accordance with the Act of March 3, 1931 (Davis-
Bacon Act, as amended), the Borrower shall include such list in all contracts
calling for work on the Project and require adherence thereto. The Borrower
shall also require of each of its contractors that such list shall be posted at
appropriate conspicuous points on the site of the Project. Unless otherwise
required by law, wage rates need not be listed for non-manual workers, in-
cluding executive, supervisory, administrative and clerical employees.

If, after the award of the contract, it becomes necessary to employ any
person in a trade or occupation not classified in the above list, such person
shall be paid at not less than a rate to be determined by the Secretary of
Labor. Such approved minimum rate shall be retroactive to the time of the
initial employment of such person in such trade or occupation. The contractor
shall notify the Borrower of his intention to employ persons in trades or
occupations not classified in sufficient time for the Borrower to obtain
appoved rates for such trades or occupations.

(b) Contract Work Hours: The Applicant shall comply with the provisions of
the Contract Work Hours Standards Act (P. L. 87-581) which provides that the
Applicant will also require of its contractors that no laborer or mechanic shall
be required or permitted to be employed in such work in excess of eight hours
in any calendar day or in excess of forty hours in any workweek unless such
laborer or mechanic receives compensation at a rate not less than one and
one-half times his basic rate of pay for all hours worked in excess of eight
hours in any calendar day or in excess of forty hours in such workweek as
the case may be.

(c) The Government may waive the application of this Section in cases or
classes of cases where laborers or mechanics, not otherwise employed at
any time in the construction of the Project, voluntarily donate their services
without full compensation for the purpose of lowering the costs of construction
and the Government determines that any amounts saved thereby are fully
credited to the Borrower.

Section 22. Payment of Employees. The Borrower shall require of its con-
tractors that all employees engaged in work on the Project be paid in full (less
deductions made mandatory by law) not less often than once each week.

Section 23. Wage Underpayments and Adjustments. The Borrower shall
require of each of its contractors that, in cases of underpayment of wages by
the contractor, the Borrower may withhold from such contractor out of pay-
ments due, an amount sufficient to pay workers employed on the work covered
by his contract the difference between the wages required to be paid under the
contract and the wages actually paid such workers for the total number of
hours worked and may disburse such accounts so withheld by it for and on
account of the contractor to the respective employees to whom they are due.

Section 24. Anti-Kickback Statute. The so-called Anti Kickback Statute,
Public Law No. 324, 73rd Congress, approved June 13, 1934 (48 Stat. 1948
as amended), and the regulations issued pursuant thereto, are part of the
Loan Agreement, and the Borrower shall comply, and require each of its
contractors employed in the construction, prosecution, or completion of
the Project to comply therewith, and to cause his subcontractors to do
likewise.

Section 25. Accident Prevention. The Borrower shall provide and maintain
on its own behalf competent and adequate architectural or engineering ser-
vices covering the supervision and inspection of the development and con-
struction of the Project.