Common use of Guarantee Fund Clause in Contracts

Guarantee Fund. 1. 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 the 7th Framework Programme. The contribution of beneficiaries of this grant agreement shall be offset from the initial pre-financing, under the terms and conditions established in Article 6. 2. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, acting as executive agent on behalf of the beneficiaries of grant agreements under the 7th Framework Programme. 3. Interest generated by the Fund shall be added to it and shall be used in priority by the Commission for transfer from or recovery from the Fund referred to in paragraph 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 1st January 2007 until the day of the final payment of the last grant agreement under the 7th Framework Programme (hereinafter the Period). At the end of the 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 never exceeding 20% of their value, and within a limit not exceeding 1% of the Community financial contributions due to beneficiaries other than those referred to in paragraph 6, last indent at the end of the Period. Beyond these limits or after the 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 effectively from 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 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, the amount contributed to the Fund under this project shall be returned to the beneficiaries via the coordinator, subject any offsetting of amounts due to the Community. 6. If contributions of beneficiaries of grant agreements under 7th Framework Programme have been used, the Commission shall deduct from the amount to be returned to each of the beneficiaries of this project an amount equal to: “contribution of this project” X “Fund index” The “Fund index” 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. The applicable “Fund index” shall be that of the month [in which the project ends][in which the final payment is effected]. That deduction shall not exceed 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.

Guarantee Fund. ‌ 1. Beneficiaries The financial responsibility of the beneficiary shall contribute 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 7th Framework ProgrammeCommission on its behalf may not be offset against any pending debt it may have towards the Community. 3. The contribution Fund is the property of the beneficiaries of this on-going grant agreement agreements under FP7. The Community represented by the Commission shall be offset from the initial pre-financingmanage it, under the terms and conditions established in Article 6. 2as executive agent, on their behalf. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, acting as in its quality of executive agent on behalf of the beneficiaries of grant agreements under the 7th Framework Programmeagent. 34. Interest generated by the Fund shall be added to it and shall be used in priority by the Commission for transfer transfers from or recovery recoveries from the Fund referred to in paragraph 4 1 and 2 of Article II.19 (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 1st January 2007 the day of entry into force of the first grant agreement under FP7 until the day of the final payment of the last grant agreement under the 7th Framework Programme (hereinafter the Period)one. At the end of the Periodthat 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 contributions contribution due to beneficiaries other than those referred to in paragraph 65 , last indent at the end of the Periodperiod referred to in the above paragraph. Beyond these limits or after the 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 Communitythat period, the Commission shall recover effectively directly from 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 beneficiaries any pending payment due by the Community to the said beneficiary or adopt a recovery decision in accordance with Article II.25amount owed. 5. At the moment final payment made after the end of final paymentthe project, the amount contributed to the Fund under this project grant agreement shall be returned to the beneficiaries via the coordinator, subject any offsetting of amounts due to the Community. 6beneficiary. If contributions of beneficiaries of grant agreements under 7th Framework Programme have been used, the Commission shall deduct from the The amount to be returned to each of the beneficiaries of this project an amount shall be equal to: “contribution of to the Fund under this projectgrant agreement” X x “Fund index” The “Fund index” shall equal the ratio “contribution used”/”total contributions to the fund”, as is established at the end of each month by the Bank to be applied during the following month. The applicable “, and shall equal the following ratio reduced to 1 when superior: where: C= contributions to the Fund index” shall be that of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start of the month [in which period B= (recoveries to the project ends][in which profit of the final payment Fund) - (transfers from & recoveries on the Fund) Where following this calculation the amount to be returned to the beneficiary is effected]. That lower than the amount contributed to the Fund under this grant agreement, that deduction shall not exceed one per cent 1% 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. 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 the 7th Framework Programme. The contribution of beneficiaries of this grant agreement shall be offset from the initial pre-financing, under the terms and conditions established in Article 6. 2. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, acting as executive agent on behalf of the beneficiaries of grant agreements under the 7th Framework Programme. 3. Interest generated by the Fund shall be added to it and shall be used in priority by the Commission for transfer from or recovery from the Fund referred to in paragraph 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 1st January 2007 until the day of the final payment of the last grant agreement under the 7th Framework Programme (hereinafter the Period). At the end of the 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 never exceeding 20% of their value, and within a limit not exceeding 1% of the Community financial contributions due to beneficiaries other than those referred to in paragraph 6, last indent at the end of the Period. Beyond these limits or after the 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 effectively from 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 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, the amount contributed to the Fund under this project shall be returned to the beneficiaries via the coordinator, subject any offsetting of amounts due to the Community. 6. If contributions of beneficiaries of grant agreements under 7th Framework Programme have been used, the Commission shall deduct from the amount to be returned to each of the beneficiaries of this project an amount equal to: “contribution of this project” X “Fund index” The “Fund index” 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. The applicable “Fund index” shall be that of the month [in which the project ends][in which the final payment is effected]. That deduction shall not exceed 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.