1. ONE THIRD OF THE MINIMUM SOLVENCY MARGIN AS SPECIFIED IN ARTICLE 19 SHALL CONSTITUTE THE GUARANTEE FUND. SUBJECT TO PARAGRAPH 2, AT LEAST 50 % OF THIS FUND SHALL CONSIST OF THE ITEMS LISTED IN ARTICLE 18 (1) AND (2).
2. (A) THE GUARANTEE FUND MAY NOT, HOWEVER, BE LESS THAN A MINIMUM OF 800 000 UNITS OF ACCOUNT.
(B) ANY MEMBER STATE MAY PROVIDE FOR THE MINIMUM OF THE GUARANTEE FUND TO BE REDUCED TO 600 000 UNITS OF ACCOUNT IN THE CASE OF MUTUAL ASSOCIATIONS AND MUTUAL-TYPE ASSOCIATIONS AND TONTINES.
(C) FOR MUTUAL ASSOCIATIONS REFERRED TO IN THE SECOND SENTENCE OF THE SECOND INDENT OF ARTICLE 3 (2), AS SOON AS THEY COME WITHIN THE SCOPE OF THIS DIRECTIVE, AND FOR TONTINES, ANY MEMBER STATE MAY PERMIT THE ESTABLISHMENT OF A MINIMUM OF THE GUARANTEE FUND OF 100 000 UNITS OF ACCOUNT TO BE INCREASED PROGRESSIVELY TO THE AMOUNT FIXED IN (B) BY SUCCESSIVE TRANCHES OF 100 000 UNITS OF ACCOUNT WHENEVER THE CONTRIBUTIONS INCREASE BY 500 000 UNITS OF ACCOUNT.
(D) THE MINIMUM OF THE GUARANTEE FUND REFERRED TO IN (A), (B) AND (C) MUST CONSIST OF THE ITEMS LISTED IN ARTICLE 18 (1) AND (2).
3. MUTUAL ASSOCIATIONS WISHING TO EXTEND THEIR BUSINESS WITHIN THE MEANING OF ARTICLE 8 (2) OR ARTICLE 10 MAY NOT DO SO UNLESS THEY COMPLY IMMEDIATELY WITH THE REQUIREMENTS OF PARAGRAPH 2 (A) AND (B) OF THIS ARTICLE.