---
kind: "section"
citation: "2 C.F.R. § 3485.330"
title: "2"
number: "3485.330"
heading: "What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business?"
url: "https://uscodex.org/cfr/2/3485.330"
---

# §3485.330. What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business?

- (a) Before entering into a covered transaction with a participant at the next lower tier, you must require that participant to—
  - (1) **Comply with this subpart as a condition of participation in the transaction.** You must do so using the method specified in [paragraph (b)](#b) of this section; and
  - (2) Pass the requirement to comply with this subpart to each person with whom the participant enters into a covered transaction at the next lower tier.
- (b) To communicate the requirements in this part to a participant, you must include a term or condition in the transaction that requires the participant's compliance with [part 180](/cfr/2/part180.md), [subpart C](/cfr/2/subpartC.md), of this title, as adopted at [§ 3485.12](/cfr/2/3485.12.md), and requires the participant to include a similar term or condition in lower-tier covered transactions.
- (c) The failure of a participant to include a requirement to comply with [Subpart C](/cfr/2/subpartC.md) of [2 CFR part 180](/cfr/2/part180.md) in the agreement with a lower tier participant does not affect the lower tier participant's responsibilities under this part.

## Notes

### Authority

Authority: E.O. 12549 (3 CFR 1986 Comp., p. 189); E.O. 12689 (3 CFR 1989 Comp., p. 235); sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 6101 note); 20 U.S.C. 1082, 1094, 1221e-3, and 3474, unless otherwise noted.

### Source

Source: 77 FR 18673, Mar. 28, 2012, unless otherwise noted.