1. One third of the required solvency margin as specified in Article 19 shall constitute the guarantee fund. This fund shall consist of the items listed in Article 18(2), (3) and, with the agreement of the competent authority of the home Member State, (4)(c).
2. The guarantee fund may not be less than a minimum of EUR 3 million.
Any Member State may provide for a reduction of one-quarter of the minimum guarantee fund in the case of mutual associations and mutual-type associations and tontines.