(1) If a third party had a claim of ownership in the property or the confiscated right at the time the decision on confiscation became final, or if the object was encumbered by a right of a third party which was extinguished or placed at a detriment by the decision, then the third party is appropriately compensated in money, taking into consideration the fair market value. The State or corporation, or institution under public law to which ownership of the object or the forfeited right has been transferred, is obliged to pay such compensation.
(2) Compensation is not granted if
1. the third party has at least recklessly contributed to the property or the right thereto having been the object or instrumentality of the act or of its preparation,
2. the third party has acquired the object, or the right in the object, in a reprehensible manner with knowledge of the circumstances which permit its confiscation, or
3. it would be permissible, under the circumstances which justified the confiscation, to confiscate the object from the third party permanently and without compensation on the basis of legal provisions outside of the law concerning regulatory offences.
(3) In cases under subsection (2), compensation may be granted to the extent that its refusal would constitute an undue hardship.