Europol Public Information  quality remedial actions to Europol’s satisfaction. The  Contractor  may submit written observations  on the  Formal notification  within 30 (thirty) days of its receipt. Such period shall not be taken into  account for the purpose of calculating liquidated damages from the Contractor under Article II-23  (“Liquidated damages”). Europol is entitled to apply the reduction or off-set the price if the  Contractor fails to satisfactorily act by the strict deadline set in the notice or if the  Contractor’s written observations are not submitted within the deadline specified. Page 40 of 79  Europol’s initials:  Contractor’s initials:  4. Recovery rules in the case of joint tender:  3. Interest on late payment: 2. Recovery procedure: Recovery  Article II-12  5. If the  Contractor submits its written observations within the deadline specified in the paragraph  above, Europol must consider such observations in good faith and notify the  Contractor  in writing if  it accepts the  Contractor’s  observations and therefore will not pursue a reduction or off-setting of  price or if it rejects such observations and decides to reduce or off-set the price and the final  amount. 1. This Article is applicable if an amount must be recovered under the  Framework Contract . i. Before recovery, Europol must  formally notify  the  Contractor  of its intention to recover the  amount it claims, specifying the amount due and the reasons for recovery and inviting the  Contractor to make any observations within 30 (thirty) days of receipt of Europol’s  Formal  notification .  ii. If no written observations have been submitted or if the observations are considered  inadequate and Europol decides to pursue the recovery procedure, it must confirm this by  means of a debit note issued to the Contractor specifying the date for payment. The  Contractor must pay in accordance with the provisions and by the deadline specified in the  debit note.  iii. If the Contractor does not pay by the due date, Europol may, after  Formal notification  to the  Contractor, recover the amounts due:  a) by offsetting them against any amounts owed to the  Contractor by Europol (including  under any separate contract between Europol and the Contractor); b) by calling in a financial guarantee if the  Contractor  has submitted one to Europol; c) by legal action.  i. If the Contractor does not pay the amount due by the deadline in the debit note, the amount  due bears interest at the rate indicated in Article II-8 (9) (“Payments and guarantees”).  Calculation of interest on late payment will cover the period starting on the day after the due  date for payment and ending on the date when Europol receives the full amount owed. ii. Any partial payment is first entered against charges and interest on late payment and then  against the principal amount. 