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A monitored alarm is connected to an alarm receiving centre ARC. The alarm panel will communicate with the ARC in the event of alarm activation. The ARC will then notify either the appropriate key holders for the property or the police, depending on the arrangement and other factors. An annual fee is charged for alarm monitoring, this is typically paid directly to the alarm company. Home security alarms requiring police response must meet certain standards including installation of a graded alarm system installed to British and European Standards and an annual maintenance contract from an approved alarm company. If the police were called to 2 false alarms in a rolling 12 month period the response will be downgraded to a lower level of police response.