CHAPTER 3PAYMENT AND CONTROL

Article 8Payments from the Commission

1.

Only Sapard assistance granted in accordance with the provisions of the Programme approved by the Commission, of the multiannual and annual financing agreements and in accordance with the Commission decision referred to Article 3(1), shall be subject to co-financing by the Community.

2.

Payments shall be made in euro to the Sapard euro account, and in accordance with the provisions of Article 32(1), th second subparagraph of Article 32(2), Article 32(3) with the exception of subparagraphs (a), (d) and the second and third last subparagraphs, and in accordance with Article 32(4)(a) and (b) of Regulation (EC) No. 1260/1999.

3.

The Commission shall make an initial payment, on account, to the Sapard euro account. This payment, which may be made in more than one instalment, shall not exceed 49 % of the first annual allocation to the applicant country concerned, set out in the Annex to Commission Decision (EC) No 1999/595/EC9. The payment shall be made on condition that the Sapard agency accreditation has been subject to the decision referred to in Article 3(1), and after conclusion of the multiannual financing agreement and first annual financing agreement. The payment shall be repaid if no payment application in accordance with Article 10 is received by the Commission within 18 months of the date of that payment.

4.

Subsequent payments shall be made in accordance with the rules provided for in Article 10.

5.

Conversion costs, bank charges and exchange losses shall not be subject to Community co-financing.