---
kind: "section"
citation: "2 C.F.R. § 1125.332"
title: "2"
number: "1125.332"
heading: "What method must I use to pass requirements down to participants at lower tiers with whom I intend to do business?"
url: "https://uscodex.org/cfr/2/1125.332"
---

# §1125.332. What method must I use to pass requirements down to participants at lower tiers with whom I intend to do business?


You as a participant in a covered transaction must include a term or condition in any lower-tier covered transaction into which you enter, to require the participant of that transaction to—

- (a) Comply with [subpart C](/cfr/2/subpartC.md) of the OMB guidance in [2 CFR part 180](/cfr/2/part180.md); and
- (b) Include a similar term or condition in any covered transaction into which it enters at the next lower tier.

## Notes

### Authority

Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235; 5 U.S.C. 301 and 10 U.S.C. 113.

### Source

Source: 72 FR 34984, June 26, 2007. Redesignated at 85 FR 51161, Aug. 19, 2020.