## II.21. PAYMENTS AND GUARANTEES 

## II.21.1. Date of payment 

Payments are deemed to be effected on the date when they are debited to the contracting authority’s account. 

## II.21.2. Currency 

Payments are made in euros or in the currency provided for in Article I.7. 

## II.21.3. Conversion 

The contracting authority makes any conversion between the euro and another currency at the daily euro exchange rate published in the Official Journal of the European Union, or failing that, at the monthly accounting exchange rate, as established by the European Commission and published on the website indicated below, applicable on the day when it issues the payment order. 

The contractor makes any conversion between the euro and another currency at the monthly accounting exchange rate, established by the Commission and published on the website indicated below, applicable on the date of the invoice. 

http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm 

## II.21.4. Costs of transfer 

The costs of the transfer are borne as follows: 

(a) the contracting authority bears the costs of dispatch charged by its bank; 

(b) the contractor bears the costs of receipt charged by its bank; 

(c) the party causing repetition of the transfer bears the costs for repeated transfer. 

## II.21.5. Pre-financing, performance and money retention guarantees 

If, as provided for in Article I.6 , a financial guarantee is required for the payment of pre- financing, as performance guarantee or as retention money guarantee, it must fulfil the following conditions: 

(a) the financial guarantee is provided by a bank or a financial institution approved by the contracting authority or, at the request of the contractor and with the agreement of the contracting authority, by a third party; 

(b) the guarantor stands as first-call guarantor and does not require the contracting authority to have recourse against the principal debtor (the contractor). 

The contractor bears the cost of providing such guarantee. 

Pre-financing guarantees must remain in force until the pre-financing is cleared against interim payments or payment of the balance. Where the payment of the balance takes the form of a debit note, the pre-financing guarantee must remain in force for three months after the 

