advance payment bond | advance payment guarantee | down-payment guarantee

installments | repayment by instalments | sum on account

advance payments bond

non-refundable account

installment bond [ instalment bond ]

These documents had the objective of recalling certain provisions of Regulation 1164/94 and set rules to ensure the respect of the principle of sound financial management: The arrangements for the payment of the 20% payment on account; the procedure for implementing the repayment, in whole or in part, of the payment on account (“M+12 rule”); the procedure to be applied under Art.C5 of Annex II of Reg. 1164/94 (“M+24 rule”); the guidelines for the amendments of decisions on Cohesion Fund projects; the transition arrangements from ISPA to Cohesion Fund for the Member States concerned.

By the end of 2001, a total of EUR830 million (EUR332 million in advances and EUR498 million in reimbursements) had been paid for the Objective 3 programme, that is 17.5% of the total SPD.

In that sense, the government plays the role of a banker; it is a guarantor of our initial payment that we make to producers.

Generally speaking, it's a 20% down payment that we're looking for, but we've credited land sales, so we're talking about a 15% to 16% down payment. We would finance the balance of it, and what we do when we structure our terms of repayment is try to structure them in a way that what they're paying on lease versus what they're going to pay on the new loan would be very similar.