CHAPTER IIICLEARANCE OF ACCOUNTS

SECTION 1Recovery of Debts

Article 27Interest applicable to recovery of undue payments

1.

Unless otherwise provided in sectoral agricultural legislation, the interest on undue payments to be recovered as a consequence of irregularity or negligence, shall be calculated for the period elapsing between the expiry of the payment deadline for the beneficiary indicated in the recovery order and the date of the repayment or deduction. The payment deadline shall not be set at more than 60 days after the recovery order. F1F2F3A relevant authority may decide not to recover the interest when the amount of interest does not exceed F4EUR 5F4£5.00.F1On duly justified grounds, the Secretary of State may decide not to recover the interest on undue payments.

2.

The interest rate to be applied shall in any case not be lower than the interest rate provided for by F5national lawF5the law applying in the constituent nation for the recovery of comparable undue expenditures or for the collection of receivables due.

Article 28Recovery by offsetting

Without prejudice to any other enforcement action provided for by F6the law applying in the constituent nation, F7the relevant authority shall off-set any outstanding debt of a beneficiary F8established in accordance with national law against any future payments to be made F9... by the paying agency responsible for the recovery of the debt to that beneficiary.