---
kind: "section"
citation: "2 C.F.R. § 2424.300"
title: "2"
number: "2424.300"
heading: "What must I do before I enter into a covered transaction with another person at the next lower tier (HUD supplement to governmentwide definition at 2 CFR 180.300)?"
url: "https://uscodex.org/cfr/2/2424.300"
---

# §2424.300. What must I do before I enter into a covered transaction with another person at the next lower tier (HUD supplement to governmentwide definition at 2 CFR 180.300)?

- (a) You, as a participant, are responsible for determining whether you are entering into a covered transaction with an excluded or disqualified person. You may decide the method by which you do so.
  - (1) **You may, but are not required to, check the Excluded Parties List System (EPLS).**
  - (2) **You may, but are not required to, collect a certification from that person.**
- (b) In the case of an employment contract, HUD does not require employers to check the EPLS prior to making salary payments pursuant to that contract.

## 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.

### Source

Source: 72 FR 73487, Dec. 27, 2007, unless otherwise noted.