Division 5 Use of the Union contributionF1

The Union contribution shall be used:

1. (a)

   towards risk provisioning;

2. (b)

   to cover agreed fees and costs associated with the establishment and management of the Debt Instrument, including its evaluation and support actions, which have been determined in line with Regulation (EU, Euratom) No 966/2012 and market practice. The administrative and performance-based fees to be paid to the entrusted entity shall not exceed 2 % and 3 % respectively of the Union contribution effectively used for individual operations, on the basis of a cost-based agreed methodology between the Commission and the entrusted entities;

3. (c)

   for directly related support actions.