Annexes to COM(2005)705 - Rules for the participation of undertakings, research centres and universities in actions under the Seventh Framework Programme and for the dissemination of research results (2007-2013)

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dossier COM(2005)705 - Rules for the participation of undertakings, research centres and universities in actions under the Seventh Framework ...
document COM(2005)705 EN
date December 18, 2006
ANNEX

PARTICIPANT GUARANTEE FUND

1.The Fund will be managed by the Community represented by the Commission acting as executive agent on behalf of the participants, under conditions to be established by the model grant agreement.

The Commission will entrust the financial management of the Fund either to the European Investment Bank or, in accordance with Article 14, point (b), to an appropriate financial institution (hereinafter ‘the depository bank’). The depository bank shall manage the Fund pursuant to a brief by the Commission.

2.The Commission may offset, from the initial pre-financing that it will pay to the consortium, the participants' contribution to the Fund, and pay it on their behalf to the Fund.

3.Where amounts are due to the Community by a participant, the Commission may, without prejudice to penalties which may be imposed on the defaulting participant in accordance with the Financial Regulation, either:

(a)order the depositary bank to directly transfer the amount due from the Fund to the coordinator of the indirect action if it is still on-going and the remaining participants agree to implement it to the identical regarding its objectives, in accordance with Article 18(4). Amounts transfered from the Fund will be regarded as Community financial contribution; or

(b)recover effectively the said amount from the Fund should the indirect action be terminated or already completed.

The Commission will emit to the benefit of the Fund a recovery order against that participant. The Commission may adopt to that end a recovery decision in accordance with the Financial Regulation.

4.The amounts recovered from the Fund during the Seventh Framework Programme will constitute revenue assigned to it within the meaning of Article 18(2) of the Financial Regulation.

Once the implementation of all grants under the Seventh Framework Programme is complete, any sums outstanding from the Fund will be recovered by the Commission and entered into the budget of the Community, subject to decisions on the Eighth Framework Programme