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1. Where the debtor has a claim on the Union, or on an executive agency when it implements the budget, that is certain within the meaning of Article 98(3), point (a), of a fixed amount and due relating to a sum established by a payment order, the accounting officer shall, after expiry of the deadline referred to in Article 98(4), first subparagraph, point (b), recover established amounts receivable by offsetting. In exceptional circumstances, where it is necessary to safeguard the financial interests of the Union and where the accounting officer has justified grounds to believe that the amount due to the Union would be lost, the accounting officer may recover by offsetting before the expiry of the deadline referred to in Article 98(4), first subparagraph, point (b). The accounting officer may also recover by offsetting before the expiry of the deadline referred to in Article 98(4), first subparagraph, point (b), when the debtor agrees.

2. Before proceeding with any recovery in accordance with paragraph 1 of this Article, the accounting officer shall consult the authorising officer responsible and inform the debtors concerned, including of the means of redress in accordance with Article 134. Where the debtor is a national authority or one of its administrative entities, the accounting officer shall also inform the Member State concerned of his or her intention to resort to recovery by offsetting at least 10 working days in advance of proceeding with it. However, in agreement with the Member State or administrative entity concerned, the accounting officer may proceed with the recovery by offsetting before that deadline has passed.

3. The offsetting referred to in paragraph 1 shall have the same effect as a payment and discharge the Union for the amount of the debt and, where appropriate, of the interest due.

4. The opening of insolvency proceedings shall not affect the right of the accounting officer to proceed with a recovery by offsetting as referred to in paragraph 1.