Common use of Recovery at payment of the balance Clause in Contracts

Recovery at payment of the balance. If the payment of the balance takes the form of a recovery (see Article 21.4), the [Commission][Agency] Agency will formally notify a ‘pre-information letter’ to the beneficiary: informing it of its intention to recover, the amount due as the balance and the reasons why; specifying that it intends to deduct the amount to be recovered from the amount retained for the Guarantee Fund; and inviting it to submit observations within 30 days of receiving notification. If no observations are submitted or the [Commission][Agency] Agency decides to pursue recovery despite the observations it has received, it will confirm recovery (together with the notification of amounts due; see Article 21.5) and: pay the difference between the amount to be recovered and the amount retained for the Guarantee Fund, if the difference is positive or formally notify to the beneficiary a debit note for the difference between the amount to be recovered and the amount retained for the Guarantee Fund, if the difference is negative. This note will also specify the terms and the date for payment. If payment is not made by the date specified in the debit note, the [Commission][Agency] Agency will recover the amount: by offsetting it — without the beneficiary’s consent — against any amounts owed to the beneficiary by the Agency, the Commission or another executive agency (from the EU or Euratom budget). In exceptional circumstances, to safeguard the EU’s financial interests, the [Commission][Agency] Agency may offset before the payment date specified in the debit note; by drawing on the Guarantee Fund. The Agency or the [Commission][Agency] will formally notify the beneficiary the debit note on behalf of the Guarantee Fund and recover the amount: [OPTION if Article 14 applies and joint and several liability has been requested by the [Commission][Agency]: if a linked third party has accepted joint and several liability (see Article 14), by holding the third party liable up to the maximum EU contribution indicated, for the linked third party, in the estimated budget (see Annex 2) and/or][OPTION: not applicable;] by taking legal action (see Article 57) or by adopting an enforceable decision under Article 299 of the Treaty on the Functioning of the EU (TFEU) [and Article 106a of the Euratom Treaty] (see Article 57) and Article 79(2) of the Financial Regulation No 966/2012. If payment is not made by the date in the debit note, the amount to be recovered (see above) will be increased by late-payment interest at the rate set out in Article 21.11, from the day following the payment date in the debit note, up to and including the date the Agency or the [Commission][Agency] receives full payment of the amount. Partial payments will be first credited against expenses, charges and late-payment interest and then against the principal. Bank charges incurred in the recovery process will be borne by the beneficiary, unless Directive 2007/64/EC applies.

Recovery at payment of the balance. If the payment of the balance takes the form of a recovery (see Article 21.4), the [Commission][Agency] Agency will formally notify a ‘pre-information letter’ to the beneficiary: - informing it of its intention to recover, the amount due as the balance and the reasons why; - specifying that it intends to deduct the amount to be recovered from the amount retained for the Guarantee Fund; and - inviting it to submit observations within 30 days of receiving notification. If no observations are submitted or the [Commission][Agency] Agency decides to pursue recovery despite the observations it has received, it will confirm recovery (together with the notification of amounts due; see Article 21.5) and: - pay the difference between the amount to be recovered and the amount retained for the Guarantee Fund, if the difference is positive or - formally notify to the beneficiary a debit note for the difference between the amount to be recovered and the amount retained for the Guarantee Fund, if the difference is negative. This note will also specify the terms and the date for payment. If payment is not made by the date specified in the debit note, the [Commission][Agency] Agency will recover the amount: : (a) by offsetting it — without the beneficiary’s consent — against any amounts owed to the beneficiary by the Agency, the Commission or another an executive agency (from the EU or Euratom budget). In exceptional circumstances, to safeguard the EU’s financial interests, the [Commission][Agency] Agency may offset before the payment date specified in the debit note; by drawing on the Guarantee Fund. The Agency or the [Commission][Agency] will formally notify the beneficiary the debit note on behalf of the Guarantee Fund and recover the amount: [OPTION if Article 14 applies and joint and several liability has been requested by the [Commission][Agency]: if a linked third party has accepted joint and several liability (see Article 14), by holding the third party liable up to the maximum EU contribution indicated, for the linked third party, in the estimated budget (see Annex 2) and/or][OPTION: not applicable;] by taking legal action (see Article 57) or by adopting an enforceable decision under Article 299 of the Treaty on the Functioning of the EU (TFEU) [and Article 106a of the Euratom Treaty] (see Article 57) and Article 79(2) of the Financial Regulation No 966/2012. If payment is not made by the date in the debit note, the amount to be recovered (see above) will be increased by late-payment interest at the rate set out in Article 21.11, from the day following the payment date in the debit note, up to and including the date the Agency or the [Commission][Agency] receives full payment of the amount. Partial payments will be first credited against expenses, charges and late-payment interest and then against the principal. Bank charges incurred in the recovery process will be borne by the beneficiary, unless Directive 2007/64/EC applies.