Forfeiture
Article 56
1. Once the competent authority is aware of circumstances giving rise to forfeiture of the security, in whole or in part, it shall without delay demand the party required to meet the obligation to pay the sum forfeited, allowing up to 30 days from the day of receipt of demand for payment. Where payment has not been made at the end of that period, the competent authority shall: (a) without delay clear any security of the type described in Article 52(1), point (a), to the appropriate account; (b) without delay require the guarantor referred to in Article 52(1), point (b), to pay, allowing up to 30 days from the day of receipt of demand for payment; (c) without delay take steps to: (i) convert the securities described in Article 52(2), points (b) and (c), into money sufficient to recover the sum due; (ii) clear pledged cash deposits referred to in Article 52(2), point (a), to its own account. The competent authority may without delay clear any security of the type described in Article 52(1), point (a), to the appropriate account without first requiring the person concerned to effect payment. 2. Without prejudice to paragraph 1: (a) where the decision to forfeit a security is taken but on appeal is subsequently postponed in accordance with national law, the party concerned shall pay interest on the sum actually forfeited over the period starting 30 days from the day of receipt of the demand for payment as referred to in paragraph 1 and ending on the day prior to the payment of the sum actually forfeited; (b) where following the outcome of the appeal procedure the party concerned is asked to pay within 30 days the sum forfeited, for the purpose of calculating interest the Member State may consider payment to be made on the 20th day following the date of such request; (c) the rate of interest applicable is calculated in accordance with national law, but shall in no case be lower than the interest rate applicable in case of recovery of national amounts; (d) paying agencies shall deduct the interest paid from EAGF or EAFRD expenditure in accordance with Regulation (EU) 2021/2116; (e) Member States may claim periodically an increase of the security in respect of the interest involved. 3. Where a security has been forfeited and the amount already credited to the Funds and, following the outcome of an appeal procedure, the sum forfeited in whole or in part, including interest at a rate in accordance with national law, is to be repaid, the sum to be repaid shall be borne by the Funds, unless the repayment of the security is attributable to the negligence or serious mistake of administrative authorities or other bodies of the Member State.