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1. This Title applies to grants awarded under direct management.

2. Grants may be awarded in order to finance any of the following:

(a) an action intended to help achieve a Union policy objective (action grants);

(b) the functioning of a body which has an objective forming part of, and supporting, a Union policy (operating grants). Operating grants shall take the form of a financial contribution to the work programme of the body referred to in the first subparagraph, point (b).

3. Grants may take any of the forms provided for in Article 125(1). Where the grant takes the form of financing not linked to costs pursuant to Article 125(1), first subparagraph, point (a):

(a) the provisions related to eligibility and verification of costs laid down in this Title, in particular Articles 185, 187 and 188, Article 189(2), (3) and (4), Article 193, Article 194(3), the provisions relating to an estimated budget or estimated eligible costs laid down in Article 199(1), point (e), and the provisions laid down in Article 206(4), shall not apply;

(b) as regards Article 184, only the procedure and the requirements referred to in paragraphs 2 and 3, paragraph 4, first subparagraph, points (a) and (d), and second subparagraph, point (a), and paragraph 5, of that Article shall apply.

4. Each Union institution may award public contracts or grants for communication activities. Grants may be awarded where the use of procurement is not appropriate due to the nature of activities.

5. The JRC may receive funding charged to appropriations other than research and technological development appropriations in respect of its participation in grant award procedures financed in whole or in part from the budget. In such cases, Article 201(4), as far as financial capacity is concerned, and Article 199(1), points (a) to (d), shall not apply.