7. pants

If any of the conditions

justifying suspension of disbursements or reimbursement of funds

under Articles 6.1.1 or 6.2.1 apply, the NMFA may instruct the

Focal Point, that disbursed funds may not be used for any or all

of the subprojects to which such conditions apply, and/or for

management cost if the conditions relate to the role of the

Intermediary. The Focal Point shall ensure that the Intermediary

will act in compliance with such an instruction.

Article 3.3

Transfer and Use

of the Grant

1.The Focal Point shall ensure

that the Paying Authority, within fifteen working days of receipt

of the disbursement, transfers the disbursement to the

Intermediary. The NMFA shall be notified by e-mail before the

15th of each month of the transfers made in the

previous month. Such notification shall contain the amount

transferred, the name of the recipient, the FMO Fund number, and

the date of the transfer.

2.The Focal Point shall ensure

that the Intermediary will establish two accounts, one for

management costs and one for re-granting.

Article 3.4

Increased

cost

If the cost of the management of

the Fund should exceed the management cost stipulated in Article

2 paragraph 5 of the Grant Agreement, the Focal Point shall

ensure that the Intermediary obtains or provides any such

additional funds so as to ensure the full implementation of the

Fund.

Chapter 4

Obligations

related to the Implementation of the FUND

Article 4.1

Modification of

the Fund