Article 7
1. Payment to the party concerned shall be effected in accordance with the choice indicated in the latter's proposal or in the tender: (a) within six weeks of the date of signature of the contract, a single advance payment amounting to 60 % of the Community contribution or financing; or (b) at two-monthly intervals, four equal instalments each amounting to 20 % ot the Community contribution or financing, the first such instalment being payable within six weeks of the date of signature of the contract; or (c) within six weeks of the date of signature of the contract, a single advance payment accountin to 80 % of the Community contribution or financing; however, this form of payment may be stipulated only for measures which will be fully completed within a maximum of two months of the date of signature of the contract. However, while a contract is being peformed, the Commission or the competent authority may: - defer payment of an advance either wholly or in part where it finds, in particular during the checks referred to in Article 6 (2) (b). Irregularities in carrying out the measures concerned or a substantial interval between the due date for payment of the advance and the date when the party concerned will actually incur the forecast expenditure; - in exceptional cases, bring forward the payment of an advance either wholly or in part if the party concerned submits a reasoned application and shows that he must incur a substantial part of the expenditure significantly earlier than the date laid down for payment. 2. The payment of each advance shall be conditional upon the lodging with the Commission or the competent authority of a security equal to the amount of the advance, plus 10 %. 3. Securities shall be released and the balance shall be paid subject to: (a) the forwarding to the Commission or the competent authority of the report referred to in Article 8 (1) and to verification of the details contained in that report; and (b) confirmation by the Commission or the competent authority that the party concerned has fulfilled his obligations as laid down in the contract; and (c) the competent authority finding that the party concerned or any third party named in the contract has spent his own contribution for the purposes laid down. 4. In so far as the conditions set out in paragraph 3 are not fulfilled, securities shall be forfeit. In that event, the amount in question shall be deducted from the European Agricultural Guidance and Guarantee Fund, Guarantee Section, expenditure and more particularly from that arising out of the measures referred to in Article 4 of Regulation (EEC) No 1079/77.