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5.—(1) Subject to regulation 15(2), an applicant shall be eligible to make an application for a conversion grant if at the date of application the applicant–
(a)is either–
(i)the owner of a production unit and in lawful actual occupation of that production unit;
(ii)the tenant of a production unit under a lease which will run at least until the end of the specified conversion period or with security of tenure by virtue of any statutory provision until then and in either case is in lawful actual occupation of that production unit; or
(iii)subject to regulation 10, a grazings committee;
(b)is entering into the scheme a farm or part of a farm which is eligible for a conversion grant in terms of paragraph (2);
(c)is not prohibited from giving the undertaking set out in regulation 6 by application of a penalty pursuant to Article 64 (which requires Member States to determine a system of penalties for breaches of the obligations entered into under, and of regulatory provisions of, the Commission Regulation) of the Commission Regulation or by a decision of the Scottish Ministers under regulation 20(4); and
(d)is not excluded from all aid under Chapter VI of Title II of Regulation 1257/99 by virtue of Article 63 (which requires a person who, intentionally or by reason of serious negligence, makes a false declaration to be excluded from all rural development measures falling under the relevant chapter of Regulation 1257/99) or 64 of the Commission Regulation.
(2) Subject to regulation 15(2), for the purposes of paragraph (1)(b), a farm or part of a farm is eligible for a conversion grant if–
(a)it is a production unit or, if the applicant is a grazings committee, a common grazing which has been accepted by a private inspection body as viable for conversion to organic farming methods;
(b)it extends to not less than one hectare;
(c)the first certificate of registration for the farm or part of a farm is issued after the applicant makes the application for the conversion grant;
(d)it will take at least 2 years from the date of registration to convert the farm or part of a farm to being fully organic;
(e)the first certificate of registration for the farm or part of a farm is received by the Scottish Ministers before 31st March following the Scottish Ministers' decision to accept the application for a conversion grant for that farm or part; and
(f)the farm or part of a farm has not been fully organic at any time during the period beginning on 10th August 1993 and ending with the date of registration.
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