A contract is concluded between an authorised representative of the Cultural Endowment and the recipient of a targeted grant or an authorised/legal representative of the recipient. The purpose of the contract is to establish the rights and obligations of the parties in using the targeted grant awarded by the Cultural Endowment. The contract specifies that the recipient of the targeted grant has requested support from the Cultural Endowment by submitting an appropriate application. The recipient confirms the correctness of all data specified in the application. The Cultural Endowment, having reviewed the application and decided to award the grant, sets out the content of the decision in the contract.

The amount of a targeted grant and its use

The Cultural Endowment awards the recipient of a targeted grant the amount specified in the contract. The grant is non-repayable provided that the recipient fulfils all the conditions set out in the contract. Awards, scholarships or grants are not awarded to individuals that have an unfulfilled reporting obligation and/or during a 3-month penalty period following the late submission of a report. You can find out the deadline for submitting your report by filing a public information request in the Grants section of the Cultural Endowment website or by viewing the deadline in e-kulka.
The intended purpose and the deadline for the realization of the goalof use for targeted grants are specified in the contract. The full amount of the targeted grant is paid by bank transfer to the bank account of the recipient of the grant.

Recipients of targeted grants must:

• use the targeted grant funds for the purpose specified in the application and contract;
• submit a report on the use of the grant funds in respect to the project outcomes and finances to the Cultural Endowment within one month after carrying out the project or part thereof, and no later than one month after the period of use of the grant ends;
• in the case of a breach of contract, repay the unused part of the grant or any part not used for the intended purpose within the deadline set out in the recovery notice issued by the Cultural Endowment.

An automatic reminder to submit a report is sent to the email address of the contact person specified in the application: (1) when the contract enters into force, (2) upon reaching the deadline for the submission of the report.

The Cultural Endowment must:

• pay the amount of the targeted grant to the recipient after the contract has entered into force and by the deadline specified in the contract;
• review the report within 90 days of its receipt, and notify the recipient if the terms and conditions for using the grant have been violated or shortcomings have been identified in the report.

The Cultural Endowment may:

• refuse payment of a targeted grant to the recipient if the recipient has unfulfilled obligations to the Cultural Endowment at the time it is obliged to pay the grant;
• recover the targeted grant if the contract has been violated;
• claim a default interest of 7% per annum for the delayed repayment of the targeted grant. The targeted grant must be repaid within the deadline set by the Cultural Endowment. If the deadline is exceeded, the recipient will be liable to pay default interest;
• inspect all accounting documents connected with using the targeted grant or have these inspected by an auditor.

Terminating a contract

A contract is terminated when the Cultural Endowment accepts the report submitted by the recipient of the targeted grant or upon the agreement of the parties, provided that the recipient has made any necessary repayment of grant funds to the Cultural Endowment.

The Cultural Endowment may cancel a contract extraordinarily and unilaterally if the recipient fails to fulfil the terms and conditions of the contract, such as:

• fails to use the grant for the purpose specified in the contract;
• submits false data to the Cultural Endowment;
• fails to meet other terms and conditions specified in the law.

Other terms and conditions

A contract for a targeted grant enters into force when the recipient of the grant returns a signed copy of the contract to the Cultural Endowment. The Cultural Endowment enters the contract signed by both parties in its register and the effective date is the date of entry in the register. In order for the contract to enter into force, the aforementioned date need not be marked on the copy of the contract left with the recipient.

If the recipient of a targeted grant has not signed and returned the contract to the Cultural Endowment within 90 days of the day the Cultural Endowment sent out the contract, the recipient loses the right to the grant and the Cultural Endowment may redistribute the support.

The terms and conditions of the contract may be amended only upon the agreement of the parties, based on a written application and the decision of the expert committee. Amendments are formulated as an annex to the contract.

Disputes arising from the contract must be resolved by the parties by way of negotiations. If an agreement is not reached, disputes must be resolved on the basis of Estonian law.

Targeted grant contracts are prepared either in duplicate, whereby each party will receive one hard copy of the contract, or in one electronic copy digitally signed by both parties.

The recipients of a targeted grant can submit reports on the use of the grant via e-kulka.