Is advance payment guarantee a financial guarantee?

Is advance payment guarantee a financial guarantee?

Guarantee policy characteristics

Insurance contract that guarantees the fulfillment of obligations to do or not to do and to return anticipated values that a person, company or institution, called “Policyholder”, contracts in favor of another called “Insured”.

It does not affect the creditworthiness of the company.

Guarantee policy characteristics

Insurance contract that guarantees the fulfillment of obligations to do or not to do and to return anticipated values that a person, company or institution, called “Policyholder”, contracts in favor of another called “Insured”.

It does not affect the creditworthiness of the company.

Release of advance payment

Within 30 calendar days following the signing of the contract referred to in Article 11(1), or within 30 days following the start of each 12-month period in the case of multiannual programmes, the contracting organization shall

should simplify this system and provide for a single security, calculated on the basis of the theoretical amount of aid entitlement for each first processor, to be lodged when the first application for an advance is submitted, and for that security to be valid for the whole of the processing period concerned. eur-lex.europa.eu

shall grant a monthly advance on the private storage aid in respect of the quantities for which aid is applied for that month, provided that the producer organization lodges a security equal to at least 105 % of the advance. eur-lex.europa.eu

Whereas it is necessary to simplify the rules and procedures for commitments and payments; whereas, to this end, budget commitments should be made annually and once only, in accordance with the multiannual financial perspective and the financing plan.

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Financial advance Public Works Act

supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards paying agencies and other bodies, financial management, clearance of accounts, securities and the use of the euro.

According to Article 7 of Regulation (EU) No 1306/2013, Member States should only accredit paying agencies if they meet certain minimum criteria set at Union level. These criteria should cover four basic areas: internal environment, control activities, information and communication, and monitoring. Member States should be free to establish additional criteria for accreditation to take account of the specific characteristics of the paying agencies. In addition, detailed rules should be laid down as regards the criteria for the accreditation of coordinating bodies referred to in Article 7(4) of Regulation (EU) No 1306/2013.

In order to enable the Commission to verify that Member States respect their obligations to protect the financial interests of the Union and to ensure an efficient application of the conformity clearance procedure provided for in Article 52 of Regulation (EU) No 1306/2013, provisions should be laid down as regards the criteria and methodology for applying corrections. The different types of corrections referred to in Article 52 of Regulation (EU) No 1306/2013 should be defined and the principles on how the circumstances of each case shall be taken into account in determining the amount of the correction should be laid down. Moreover, rules should be laid down on how recoveries made by Member States from beneficiaries are to be credited to the funds.

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