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16.—(1) The powers conferred by regulations 14 and 15 are–
(a)to apply a reduction to any payment of aid made, or to be made to the applicant under these Regulations;
(b)to withhold the whole or any part of the aid payable to the applicant; and
(c)to recover on demand the whole or any part of any aid already paid to an applicant.
(2) Where the powers specified in paragraph (1) are exercised and the Scottish Ministers also think that the applicant acted recklessly, the Scottish Ministers may also require the applicant to pay to the Scottish Ministers an additional sum equal to no more than 10% of the aid paid or payable to the applicant.
(3) Where the Scottish Ministers take any step specified in paragraph (1), the Scottish Ministers may also suspend or terminate the undertaking, and thereupon any entitlement of the applicant to aid in respect of the unexpired period of the undertaking shall likewise be suspended or terminated, as the case may be.
(4) A reduction under paragraph (1)(a) must be applied in accordance with Council Regulation 1975/2006.
(5) The powers conferred upon the Scottish Ministers by paragraphs (2) and (3) shall be exercisable by a notice in writing.
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