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53

(f) In the event of the contractor's noncompliance with the non-
discrimination clauses of this contract or with any of the said rules,
regulations, or orders, this contract may be cancelled, terminated,
or suspended in whole or in part and the contractor may be declared
ineligible for further Government contracts and Federally assisted
construction contracts, in accordance with procedures authorized in
Executive Order No. 10925 of March 6, 1961, as amended by
Executive Order No. 11114 of June 22, 2963, and such other sanctions
may be imposed and remedies invoked as provided in said Executive
Orders or by rules, regulations, or orders of the President's Com-
mittee on Equal Employment Opportunity, or as otherwise provided
by law.

(g) The contractor will include the provisions of paragraphs (1)
through (7) in every subcontract or purchase order unless exempted
by rules, regulations, or orders of the President's Committee on
Equal Employment Opportunity issued pursuant to section 303 of
Executive Order No. 10925 of March 6, 1961, as amended, so that
such provisions will be binding upon each subcontractor or vendor.
The contractor will take such action with respect to any subcontract
or purchase order as the Housing and Home Finance Agency may
direct as a means of endorsing such provisions, including sanctions
for noncompliance: Provided, however, that in the event the contractor
becomes involved in, or is threatened with, litigation with a sub-
contractor or vendor as a result of such direction by the Housing and
Home Finance Agency, the contractor may request the United
States to enter into such litigation to protect the interests of the
United States."

(2) The Borrower further agrees that it will be bound by the above
equal opportunity clause in any Federally assisted construction
work which it performs itself other than through the permanent
work force directly employed by an agency of government.

(3) The Borrower agrees that it will cooperate actively with the ad-
ministering agency and the President's Committee on Equal Em-
ployment Opportunity in obtaining the compliance of contractors
and subcontractors with the equal opportunity clause and the rules,
regulations and relevant orders of the Committee, that it will
furnish the administering agency and the Committee such information
as they may require for the supervision of such compliance, and
that it will otherwise assist the administering agency in the discharge
of the agency's primary responsibility for securing compliance.

(4) The Borrower further agrees that it will refrain from entering
into any contract or contract modification subject to Executive
Order 11114 with a contractor debarred from, or who has not
demonstrated eligibility for, Government contracts and Federally
assisted construction contracts pursuant to Part III, Subpart D
of Executive Order 10925 and will carry out such sanctions and
penalties for violation of the equal opportunity clause as may be
imposed upon contractors and subcontractors by the administering
agency or the Committee pursuant to Part III, Subpart D of Execu-
tive Order 10925.

(5) In addition, the Borrower agrees that if it fails or refused to
comply with these undertakings the administering agency may cancel,
terminate or suspend in whole or in part this grant ( contract, loan
insurance, guarantee), 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 applicant, or may refer the case to the Depart-
ment of Justice for appropriate legal proceedings.

B. Equal Opportunity in Housing

The Loan Agreement is subject to the provisions of Executive Order
11063, dated November 20, 1962. The Borrower covenants and agrees
that it will not discriminate nor permit discrimination by its agents,
lessees or any other operating housing and related facilities, in the
use or occupancy of said facilities because of race, color, creed, or
national origin.