TITLE IGENERAL PROVISIONS

Article 7Recovery of undue payments

1.

If undue payment is made, the beneficiary shall repay the amount in question plus, where applicable, interest calculated in accordance with paragraph 2.

2.

Interests shall be calculated for the period elapsing between the payment deadline for the beneficiary indicated in the recovery order, which shall not be set at more than 60 days, and the date of either repayment or deduction.

The rate of interest applicable shall be calculated in accordance with F1the law applying in the constituent nation, but shall not be lower than the interest rate applicable for the recovery of amounts under F2those provisions.

3.

The repayment obligation referred to in paragraph 1 shall not apply if the payment was made by error of the competent authority or of another authority and if the error could not reasonably have been detected by the beneficiary.

However, where the error relates to factual elements relevant for the calculation of the payment concerned, the first subparagraph shall only apply if the decision to recover was not communicated within 12 months of the payment.