Common use of Guarantee Fund Clause in Contracts

Guarantee Fund. ‌ 1. The financial responsibility of the beneficiary shall be limited to its own debt, subject to the following paragraphs. 2. In accordance with Article 5, the beneficiary shall contribute, to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non-recovery of sums due to the Community by beneficiaries of grant agreements under FP7. That contribution to be transferred by the Commission on its behalf may not be offset against any pending debt it may have towards the Community. 3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Community represented by the Commission shall manage it, as executive agent, on their behalf. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, in its quality of executive agent. 4. Interest generated by the Fund shall be added to it and shall be used by the Commission for transfers from or recoveries from the Fund referred to in paragraph 1 and 2 of Article II.19 (hereinafter the Operations). Operations may be undertaken from the day of entry into force of the first grant agreement under FP7 until the day of the final payment of the last one. At the end of that period, any remaining interests shall become the property of the Community. Where interest is insufficient to cover operations, contributions to the Fund may be used within a limit not exceeding 1% of the Community financial contribution due to beneficiaries other than those referred to in paragraph 5 , at the end of the period referred to in the above paragraph. Beyond these limits or after that period, the Commission shall recover directly from beneficiaries any amount owed. 5. At the final payment made after the end of the project, the amount contributed to the Fund under this grant agreement shall be returned to the beneficiary. The amount to be returned shall be equal to: “contribution to the Fund under this grant agreement” x “Fund index” The “Fund index” is established at the end of each month by the Bank to be applied during the following month, and shall equal the following ratio reduced to 1 when superior: where: C= contributions to the Fund of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start of the period B= (recoveries to the profit of the Fund) - (transfers from & recoveries on the Fund) Where following this calculation the amount to be returned to the beneficiary is lower than the amount contributed to the Fund under this grant agreement, that deduction shall not exceed 1% of the Community financial contribution and shall not apply to amounts due to public bodies or legal entities whose participation in the grant agreement is guaranteed by a Member State or an Associated country, and higher and secondary education establishments. The beneficiary hereby accepts that the amount to be returned to it, is assigned to the payment of any debt due by the beneficiary to the Community under this grant agreement or under any other obligation irrespective of its origin, without any further formality.

Guarantee Fund. ‌ 1. The financial responsibility of the each beneficiary shall be limited to its own debt, subject to the following paragraphs. 2. In accordance with Article 56, the beneficiary beneficiaries shall contribute, to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non-recovery of sums due to the Community by beneficiaries of grant agreements under FP7. That contribution to be transferred by the Commission on its their behalf may not be offset against any pending debt it they may have towards the Community. 3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Community represented by the Commission shall manage it, as executive agent, on their behalf. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, in its quality of executive agent. 4. Interest generated by the Fund shall be added to it and shall be used by the Commission for transfers from or recoveries from the Fund referred to in paragraph 1 and 2 of Article II.19 II.20 (hereinafter the Operations). Operations may be undertaken from the day of entry into force of the first grant agreement under FP7 until the day of the final payment of the last one. At the end of that period, any remaining interests shall become the property of the Community. Where interest is insufficient to cover operationsOperations, contributions to the Fund may be used within a limit not exceeding 1% of the Community financial contribution due to beneficiaries other than those referred to in paragraph 5 5, at the end of the period referred to in the above paragraph. Beyond these limits or after that period, the Commission shall recover directly from beneficiaries any amount owed. 5. At the final payment made after the end of the project, the amount contributed to the Fund under this grant agreement shall be returned to the beneficiarybeneficiaries via the coordinator. The amount to be returned shall be equal to: “contribution to the Fund under this grant agreement” x “Fund index” The “Fund index” is established at the end of each month by the Bank to be applied during the following month, and shall equal the following ratio reduced to 1 when superior: where: C= contributions to the Fund of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start of the period B= (recoveries to the profit of the Fund) - (transfers from & recoveries on the Fund) Where following this calculation the amount to be returned to the beneficiary beneficiaries, is lower than the amount contributed to the Fund under this grant agreement, that deduction shall not exceed 1% of the Community financial contribution and shall not apply to amounts due to public bodies or legal entities whose participation in the grant agreement is guaranteed by a Member State or an Associated country, and higher and secondary education establishments. The Each beneficiary hereby accepts that the amount to be returned to it, is assigned to the payment of any debt due by the said beneficiary to the Community under this grant agreement or under any other obligation irrespective of its origin, without any further formality.

Guarantee Fund. ‌ 1. The financial responsibility of the beneficiary Beneficiaries shall be limited to its own debt, subject to the following paragraphs. 2. In accordance with Article 5, the beneficiary shall contribute, contribute to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non-recovery of sums due to the Community by beneficiaries of grant agreements under FP7the 7th Framework Programme. That The contribution to be transferred by the Commission on its behalf may not of beneficiaries of this grant agreement shall be offset against any pending debt it may have towards from the Communityinitial pre-financing, under the terms and conditions established in Article 6. 3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Community represented by the Commission shall manage it, as executive agent, on their behalf2. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, in its quality acting as executive agent on behalf of executive agentthe beneficiaries of grant agreements under the 7th Framework Programme. 43. Interest generated by the Fund shall be added to it and shall be used in priority by the Commission for transfers transfer from or recoveries recovery from the Fund referred to in paragraph 1 and 2 of Article II.19 4 (hereinafter the Operations). 5 This amount shall be the one established in the final version of the Implementing Rules of the Financial Regulation which is currently under revision. Operations may be undertaken from the day of entry into force of the first grant agreement under FP7 1st January 2007 until the day of the final payment of the last onegrant agreement under the 7th Framework Programme (hereinafter the Period). At the end of that periodthe Period, any remaining interests shall become the property of the Community. Where interest is insufficient to cover operationsOperations, contributions to the Fund may be used within a limit never exceeding 20% of their value, and within a limit not exceeding 1% of the Community financial contribution contributions due to beneficiaries other than those referred to in paragraph 5 6, last indent at the end of the period referred to in the above paragraphPeriod. Beyond these limits or after that periodthe Period, the Commission shall directly recover from beneficiaries any amount owed to the Community.. 4. Subject to paragraph 3, the Commission shall implement the following Operations on the Fund: a. where a beneficiary in an on-going grant agreement under the 7th Framework Programme owes money to the Community and does not transfer it to the coordinator at the latest 45 days after receipt of a written request from the Commission, and where the remaining beneficiaries agree to implement the said grant agreement identically regarding its objectives, the Commission shall order the Bank to directly transfer an equivalent amount to the coordinator. Amounts transferred from the Fund shall be regarded as Community financial contribution. b. where a beneficiary in any terminated or completed grant agreement under the 7th Framework Programme owes money to the Community, the Commission shall recover directly effectively from beneficiaries the Fund the amounts due. Following an Operation, the Commission shall issue against the defaulting beneficiary a recovery order to the benefit of the Fund. The Commission may offset that recovery order against any amount owed.pending payment due by the Community to the said beneficiary or adopt a recovery decision in accordance with Article II.25 5. At the moment of final payment made after the end of the projectpayment, the amount contributed to the Fund under this grant agreement project shall be returned to the beneficiarybeneficiaries via the coordinator, subject any offsetting of amounts due to the Community. 6. The If contributions of beneficiaries of grant agreements under 7th Framework Programme have been used, the Commission shall deduct from the amount to be returned shall be to each of the beneficiaries of this project an amount equal to: “contribution to the Fund under of this grant agreementproject” x X “Fund index” The “Fund index” is shall equal the ratio “contribution used”/”total contributions to the fund”, as established at the end of each month by the Bank to be applied during the following month, and . The applicable “Fund index” shall equal the following ratio reduced to 1 when superior: where: C= contributions to the Fund of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start be that of the period B= (recoveries to month [in which the profit of project ends][in which the Fund) - (transfers from & recoveries on the Fund) Where following this calculation the amount to be returned to the beneficiary final payment is lower than the amount contributed to the Fund under this grant agreement, that effected]. That deduction shall not exceed 1% one per cent of the Community financial contribution due to a beneficiary and shall not apply to amounts due to public bodies or legal entities whose participation in the grant agreement is guaranteed by a Member State or an Associated country, and higher and secondary education establishments. The beneficiary hereby accepts that the amount to be returned to it, is assigned to the payment of any debt due by the beneficiary to the Community under this grant agreement or under any other obligation irrespective of its origin, without any further formality.

Guarantee Fund. ‌ 1. The financial responsibility of the each beneficiary shall be limited to its own debt, subject to the following paragraphs. 2. In accordance with Article 56, the beneficiary beneficiaries shall contribute, to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non-recovery of sums due to the Community by beneficiaries of grant agreements under FP7. That contribution to be transferred by the Commission REA on its their behalf may not be offset against any pending debt it they may have towards the Community. 3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Community represented by the Commission shall manage it, as executive agent, on their behalf. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, in its quality of executive agent. 4. Interest generated by the Fund shall be added to it and shall be used by the Commission for transfers from or recoveries from the Fund referred to in paragraph 1 and 2 of Article II.19 II.20 (hereinafter the Operations). Operations may be undertaken from the day of entry into force of the first grant agreement under FP7 until the day of the final payment of the last one. At the end of that period, any remaining interests shall become the property of the Community. Where interest is insufficient to cover operationsOperations, contributions to the Fund may be used within a limit not exceeding 1% of the Community financial contribution due to beneficiaries other than those referred to in paragraph 5 5, at the end of the period referred to in the above paragraph. Beyond these limits or after that period, the REA or the Commission shall recover directly from beneficiaries any amount owed. 5. At the final payment made after the end of the project, the amount contributed to the Fund under this grant agreement shall be returned to the beneficiarybeneficiaries via the coordinator. The amount to be returned shall be equal to: “contribution to the Fund under this grant agreement” x “Fund index” The “Fund index” is established at the end of each month by the Bank to be applied during the following month, and shall equal the following ratio reduced to 1 when superior: where: C= contributions to the Fund of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start of the period B= (recoveries to the profit of the Fund) - (transfers from & recoveries on the Fund) Where following this calculation the amount to be returned to the beneficiary beneficiaries, is lower than the amount contributed to the Fund under this grant agreement, that deduction shall not exceed 1% of the Community financial contribution and shall not apply to amounts due to public bodies or legal entities whose participation in the grant agreement is guaranteed by a Member State or an Associated country, and higher and secondary education establishments. The Each beneficiary hereby accepts that the amount to be returned to it, is assigned to the payment of any debt due by the said beneficiary to the Community under this grant agreement or under any other obligation irrespective of its origin, without any further formality.

Guarantee Fund. ‌ 1. The financial responsibility of the beneficiary Beneficiaries shall be limited to its own debt, subject to the following paragraphs. 2. In accordance with Article 5, the beneficiary shall contribute, contribute to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non-recovery of sums due to the Community by beneficiaries of grant agreements under FP7the 7th Framework Programme. That The contribution to be transferred by the Commission on its behalf may not of beneficiaries of this grant agreement shall be offset against any pending debt it may have towards from the Communityinitial pre-financing, under the terms and conditions established in Article 6. 3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Community represented by the Commission shall manage it, as executive agent, on their behalf2. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, in its quality acting as executive agent on behalf of executive agentthe beneficiaries of grant agreements under the 7th Framework Programme. 43. Interest generated by the Fund shall be added to it and shall be used in priority by the Commission for transfers transfer from or recoveries recovery from the Fund referred to in paragraph 1 and 2 of Article II.19 4 (hereinafter the Operations). 5 This amount shall be the one established in the final version of the Implementing Rules of the Financial Regulation which is currently under revision. Operations may be undertaken from the day of entry into force of the first grant agreement under FP7 1st January 2007 until the day of the final payment of the last onegrant agreement under the 7th Framework Programme (hereinafter the Period). At the end of that periodthe Period, any remaining interests shall become the property of the Community. Where interest is insufficient to cover operationsOperations, contributions to the Fund may be used within a limit never exceeding 20% of their value, and within a limit not exceeding 1% of the Community financial contribution contributions due to beneficiaries other than those referred to in paragraph 5 6, last indent at the end of the period referred to in the above paragraphPeriod. Beyond these limits or after that periodthe Period, the Commission shall directly recover from beneficiaries any amount owed to the Community.. 4. Subject to paragraph 3, the Commission shall implement the following Operations on the Fund: a. where a beneficiary in an on-going grant agreement under the 7th Framework Programme owes money to the Community and does not transfer it to the coordinator at the latest 45 days after receipt of a written request from the Commission, and where the remaining beneficiaries agree to implement the said grant agreement identically regarding its objectives, the Commission shall order the Bank to directly transfer an equivalent amount to the coordinator. Amounts transferred from the Fund shall be regarded as Community financial contribution. b. where a beneficiary in any terminated or completed grant agreement under the 7th Framework Programme owes money to the Community, the Commission shall recover directly effectively from beneficiaries the Fund the amounts due. Following an Operation, the Commission shall issue against the defaulting beneficiary a recovery order to the benefit of the Fund. The Commission may offset that recovery order against any amount owed.pending payment due by the Community to the said beneficiary or adopt a recovery decision in accordance with Article II.25 5. At the moment of final payment made after the end of the projectpayment, the amount contributed to the Fund under this grant agreement project shall be returned to the beneficiarybeneficiaries via the coordinator, subject any offsetting of amounts due to the Community. 6. The If contributions of beneficiaries of grant agreements under 7th Framework Programme have been used, the Commission shall deduct from the amount to be returned shall be to each of the beneficiaries of this project an amount equal to: “contribution to the Fund under this grant agreement” x “Fund index” The “Fund index” is shall equal the ratio “contribution used”/”total contributions to the fund”, as established at the end of each month by the Bank to be applied during the following month, and . The applicable “Fund index” shall equal the following ratio reduced to 1 when superior: where: C= contributions to the Fund of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start be that of the period B= (recoveries to month [in which the profit of project ends][in which the Fund) - (transfers from & recoveries on the Fund) Where following this calculation the amount to be returned to the beneficiary final payment is lower than the amount contributed to the Fund under this grant agreement, that effected]. That deduction shall not exceed 1% one per cent of the Community financial contribution due to a beneficiary and shall not apply to amounts due to public bodies or legal entities whose participation in the grant agreement is guaranteed by a Member State or an Associated country, and higher and secondary education establishments. The beneficiary hereby accepts that the amount to be returned to it, is assigned to the payment of any debt due by the beneficiary to the Community under this grant agreement or under any other obligation irrespective of its origin, without any further formality.