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The Agency shall require that the language of this certification be included <br />in the award documents for all sub awards at all tiers (including <br />subcontracts, subgrants, and contracts under grants, loans and cooperative <br />agreements) and that all subcontractors shall certify and disclose <br />accordingly. <br />2. This certification is a material representation of fact upon which reliance <br />was placed when this transaction was made or entered into. Submission of <br />this certification is a prerequisite for making or entering into this <br />transaction imposed by 31 USC 1352. Any person who fails to file the <br />required certification shall be subject to a civil penalty of not less than <br />$10.000 and not more than $100.000 for each such failure. <br />VIII. ADDITIONAL REQUIREMENTS— EQUIPMENT PURCHASE, <br />MAINTENANCE AND OWNERSHIP <br />Disposition of Equipment <br />If the Agency ceases to use equipment purchased in whole or in part with CDBG funds <br />for the purpose described in this Contract, or if the Agency wishes to dispose of such <br />equipment the disposition shall be determined under the provisions of 24 CFR <br />570.502(b)(3)(vi), if the Agency is a nonprofit corporation and 24 CFR 570.502(a) and <br />24 CFR 85.32(e) if the Agency is a municipal corporation. The Agency agrees that it <br />will contact the County for instructions prior to disposing, surplusing, encumbering or <br />transferring ownership of any equipment purchased in whole or in part with federal <br />fiends. <br />IX. SUPPLANTING <br />A. Not for Profit Corporation <br />If the Agency is a nonprofit corporation providing public (human) services under <br />this Contract with CDBG fields and the Agency received non- federal funds from <br />King County "local funds or any other source to provide the same services as <br />those funded herein during the preceding calendar year, the Agency must use the <br />funds provided herein to pay for units of service this year that are over and above <br />the level of service provided with local funds during the previous year. <br />B. Municipal Corporation <br />If the Agency is a municipal corporation, any federal CDBG Funds made <br />available under this Contract shall not be utilized by the Agency to reduce or <br />replace the local financial support currently being provided for the service funded <br />under this Contract. <br />X. DRUG FREE WORKPLACE CERTIFICATION AND OTHER REQUIREMENTS <br />Interlocal Agreement for Minor Home Repair <br />Page 14 of 15 <br />