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1. Where the United Kingdom, or a person or entity established in the United Kingdom, receive Union funding under an action carried out in direct, indirect or shared management pursuant to legal commitments signed or adopted before the date of withdrawal or, where applicable, in 2019 in application of Article 4 of Regulation (EU, Euratom) 2019/1197 and eligibility under that action depends on the membership of the United Kingdom in the Union, they shall continue to be eligible for Union funding for eligible expenditure incurred in 2020 following the date of withdrawal, if the following conditions are met, and as long as no decision as referred to in Article 3(2) has entered into force:

(a) the United Kingdom, on 1 January 2020 or within 7 calendar days after the entry into force of this Regulation or after the date of its application, whichever is the later, has confirmed in writing to the Commission that it will contribute in euros, in accordance with the payment schedule laid down in this Regulation, the amount resulting from the following formula: UK OR DB2020 + UK GNI key DB2020 x (PA B2020 – PA DB2020);

(b) the United Kingdom, on 20 January 2020 or within 20 calendar days after the entry into force of this Regulation or after the date of its application, whichever is the later, has paid on the account determined by the Commission the first payment which corresponds to [3,5] twelfths of the amount referred to in point (a) of this subparagraph;

(c) the United Kingdom, on 1 January 2020 or within 7 calendar days after the entry into force of this Regulation or after the date of its application, whichever is the later, has confirmed the commitment in writing to the Commission that it will continue to accept the controls and audits which cover the entire period of the programmes and actions in accordance with the applicable rules;

(d) the Commission has adopted the decision pursuant to Article 2(2) of Regulation (EU, Euratom) 2019/1197 and has not adopted a decision pursuant to Article 3(2) of Regulation (EU, Euratom) 2019/1197; and (e) the Commission has adopted the decision referred to in paragraph 4 of this Article confirming that the conditions referred to in points (a), (b) and (c) of this subparagraph have been fulfilled. The condition set out in point (d) of the first subparagraph shall only apply insofar as Regulation (EU, Euratom) 2019/1197 has become applicable before the end of the financial year 2019.

2. For the purposes of the formula set out in point (a) of the first subparagraph of paragraph 1, the following shall apply:

(a) ‘UK OR DB2020’ shall be the amount displayed in the line ‘United Kingdom’ and the column ‘Total own resources’ of table 7 of the part ‘A. Introduction and financing of the general budget’ of the revenue part of the budget for 2020 set out in the draft budget of the European Union for the financial year 2020, as proposed on 5 July 2019;

(b) ‘UK GNI key DB2020’ shall be the amount displayed in the line ‘United Kingdom’ and the column ‘GNI-based own resources’ of table 7 of the part ‘A. Introduction and financing of the general budget’ of the revenue part of the budget for 2020 set out in the draft budget of the European Union for the financial year 2020, as proposed on 5 July 2019, divided by the amount displayed in the line ‘Total’ of the same column;

(c) ‘PA B2020 — PA DB2020’ shall be the difference between the amount displayed in the line ‘Total expenditure’ and the column ‘Budget 2020’ of the table ‘Expenditure’ of the part ‘A. Introduction and financing of the general budget’ of the revenue part of the budget of the European Union for the financial year 2020 as adopted, and the amount displayed in the same line and the same column of the same table of the same part of the draft budget of the European Union for the financial year 2020, as proposed on 5 July 2019; Notwithstanding the first subparagraph, if the budget 2020 is not definitively adopted by the date of entry into force of this Regulation or by the date of its application, whichever is the later, the ‘PA B2020 — PA DB2020’ shall be set at zero.

3. The amount referred to in point (a) of the first subparagraph of paragraph 1, after deduction of the amount of the first payment referred to in point (b) of the first subparagraph of paragraph 1, shall be broken down into equal instalments. The number of instalments shall correspond to the number of full months between the date of the first payment referred to in point (b) of the first subparagraph of paragraph 1 and the end of the year 2020. The amount referred to in point (a) of the first subparagraph of paragraph 1 shall be entered in the general budget of the Union as other revenue after deduction of a specific amount aiming at ensuring the budgetary distribution as provided in the column ‘Total own resources’ of the table referred to in point (a) of paragraph 2 and subject to dedicated practical arrangements to that effect. The commitment referred to in point (c) of the first subparagraph of paragraph 1 shall include in particular the cooperation in the protection of the financial interests of the Union and the acceptance of the rights of the Commission, the Court of Auditors and the European Anti-Fraud Office to access data and documents relating to Union contributions, and perform controls and audits.

4. The Commission shall adopt a decision on whether the conditions laid down in points (a), (b) and (c) of the first subparagraph of paragraph 1 have been fulfilled.

5. The Commission is empowered to adopt delegated acts in accordance with Article 7 concerning the extension of the deadlines set out in points (a), (b) and (c) of the first subparagraph of paragraph 1 of this Article. Where, in the case of a risk of serious disruption of the implementation and financing of the Union budget in 2020, imperative grounds of urgency so require, the procedure provided for in Article 8 shall apply to delegated acts adopted pursuant to this paragraph.