Common use of RECOVERY OF FUNDS Clause in Contracts

RECOVERY OF FUNDS. 1. If the co-financing has been paid for ineligible expenditures, irregular expenditures or the agreement has been violated, or the funds were unduly paid or overpaid, the Managing Authority issues a call for payment of funds, and the Lead Partner returns the wrongly paid co-financing as applicable. This also applies to expenditures incurred before the signing of the agreement. 2. The Managing Authority, in connection with Art. 122(2) of the General Regulation, may waive the recovery of the co-financing if the principal amount due does not exceed 250 EUR in the project. 3. The Lead Partner returns the funds in accordance with the call for payment of funds issued by the Managing Authority. The call for payment contains the amount to be reimbursed and the justification, the deadline for reimbursement and bank account number to which the funds should be reimbursed. In justified cases, the Managing Authority may extend the deadline for reimbursement of funds. 4. If within the specified period the Lead Partner does not make the reimbursement based on the call for payment referred to in section 1, the Managing Authority reduces the amount of due co- financing from the subsequent Project Progress Report by the amount payable for reimbursement together with the interest referred to in section 8, subject to section 7. If the amount due exceeds the amount of the due co-financing on accounts of the subsequent Project Progress Reports, the Managing Authority may take further actions against the Lead Partner to recover the missing funds, subject to section 7. 5. If the recovery of the co-financing on accounts of the expenditures referred to in section 1 is necessary, the Managing Authority indicates in the call for payment of funds, as referred to in section 1, the Partner, from whom the Lead Partner should recover the funds. 6. If the Lead Partner fails to recover the funds from the partner until the deadline specified in the call for payment, it shall inform the Managing Authority electronically or in writing and re-issue the call for payment to the partner. The due date set in total for both call for payments of funds submitted to the partner, counting from the date of receipt of the call for payment from the Lead Partner, shall not be shorter than 20 days. If the Lead Partner fails to recover the funds from the partner after the due date specified in the second call for payment, the Lead Partner shall notify the Managing Authority of this fact electronically or in writing. 7. If the Lead Partner submits to the Managing Authority the notifications referred to in section 6, the Managing Authority can withdraw from the activities referred to in section 4. In this case, the Managing Authority is reducing the payment of co-financing under the subsequent Project Progress Reports by the amount due, along with interest referred to in section 8. This reduction can be made to the amount due in respect of subsequent Partner Progress Reports for the partner that the call for payment of funds concerns. 8. Interest is calculated on a daily basis, starting from the day following the day on which the deadline specified in the call for payment referred to in section 1 expires and ending on the day on which the funds from the Lead Partner are credited to the programme Account or, if the due co-financing for subsequent Project Progress Reports is reduced by the amount owed with interest - until the day when the reimbursement of the reduced Project Progress Report is paid out. The interest rate is 1.5 percentage points above the rate applied by the European Central Bank in its main refinancing operations on the first working day of the month in which the payment is due. 9. Upon the request of the Lead Partner the due co-financing for the project may be reduced by the amount corresponding to the due amount to be reimbursed. 10. If the recovery of VAT which is classified in the project as eligible is possible, the Lead Partner reimburses the amount of VAT refunded thus far.

RECOVERY OF FUNDS. 1. If the co-financing has been paid for ineligible expenditures, irregular expenditures or the agreement has been violated, or the funds were unduly paid or overpaid, the Managing Authority issues produces a call for payment notice to return of funds, and the Lead Partner returns the wrongly paid co-financing as applicable. This also applies to expenditures expenses incurred before the signing signature of the agreement. 2. The Managing Authority, in connection with Art. 122(2) 122 paragraph 2 of the General Regulation, may waive the recovery of the co-financing provided if the principal amount due does not exceed 250 EUR euros in the project. 3. The Lead Partner returns the funds in accordance with the call for payment notice to return of funds issued produced by the Managing Authority. The call for payment contains the returnable amount to be reimbursed and the justification, the deadline for reimbursement return and bank account number to which the funds should be reimbursedreturned. In justified cases, the Managing Authority may extend the deadline for reimbursement of fundsdeadline. 4. If within the specified period the Lead Partner does not make the reimbursement a refund based on the call for payment notice referred to in section 1, the Managing Authority reduces the amount of due co- co-financing from the subsequent Project Progress Report by the amount payable for reimbursement together refund with the interest referred to in section 8, subject to section 7. If the amount due exceeds the amount of the due co-co- financing on accounts of the subsequent Project Progress Reports, the Managing Authority may take further actions against the Lead Partner to recover the missing funds, subject to section 7. 5. If the recovery of the co-financing on accounts of the expenditures referred to in section 1 is necessary, the Managing Authority indicates in the call for payment of notice to return the funds, as referred to in section 1, the Partner, from whom the Lead Partner should recover the funds. 6. If the Lead Partner fails to recover the funds from the partner until the deadline specified Partner in due date specific in the call for paymentnotice, it he shall inform the Managing Authority electronically or in writing and re-issue the call for payment notice to the partnerPartner. The due date set in total for both call notices for payments of return the funds submitted to the partnerPartner, counting from after the date of receipt of the call for payment notice from the Lead Partner, shall not be shorter than 20 days. If the Lead Partner fails to recover the funds from the partner after the Partner in due date specified in the second call for paymentnotice, the Lead Partner he shall notify inform the Managing Authority of this fact electronically or in writing. 7. If the Lead Partner submits to the Managing Authority the notifications notices referred to in section 6, the Managing Authority can withdraw from the activities referred to in section 4. In this case, the Managing Authority is reducing the payment of co-financing the fund under the subsequent Project Progress Reports by the amount due, along with interest referred to in section 8. This reduction can be made to the amount due in respect of subsequent Partner Progress Reports for the partner that Partner to which the call for payment of notice to return the funds concerns. 8. Interest is calculated on a daily basis, starting from the day following the day on which when the deadline specified in the call for payment reimbursement request, referred to in section 1 1, expires and ending on the day on which when the funds from form the Lead Partner are credited to the programme Account Programme account or, if the due co-co- financing for subsequent Project Progress Reports is reduced decreased by the amount owed with interest - until the day when the reimbursement of the reduced decreased Project Progress Report is paid out. The interest rate is 1.5 percentage points 1,5 % point above the rate applied by the European Central Bank in its main refinancing operations on the first working day of the month in which the payment is due. 9. Upon At the request of the Lead Partner the due co-financing for the project may be reduced by the amount corresponding to the due amount to be reimbursedreturn payment. 10. If the recovery of VAT which is classified in the project as eligible is possible, the Lead Partner reimburses the amount of VAT refunded thus far.