Article 5
1.
For the purpose of implementing the annual distribution plan referred to in Article 1 of this Regulation, the operators selected in accordance with Article 4(4) and (6) of Regulation (EU) No 807/2010 and the designated organisations referred to in Article 27(1) of Regulation (EC) No 1234/2007 may submit to the competent authority of the Member State concerned an application for advance payments relating to the cost of transport of products to the storage depots of the designated organisations referred to in point (a) of the second subparagraph of Article 27(7) of Regulation (EC) No 1234/2007 and the administrative, transport and storage costs referred to in point (b) of the second subparagraph of that Article. In duly justified cases the Member State may also provide advance payments relating to the cost of supply of the products to operators selected in accordance with Article 4(4) of Regulation (EU) No 807/2010 provided that, to the satisfaction of the Member State concerned, those operators have demonstrated that prior to 15 October 2013:
(a)
they have taken legally binding commitments to implement the operation; and
F1(b)
they have taken all measures to ensure that the implementation shall be completed not later than 28 February 2014 .
2.
The competent authority may grant an advance payment up to 100 % of the amount applied for, subject to the establishment of a security equal to 110 % of the advance referred to in paragraph 1. In the case of operators selected in accordance with Article 4(4) of Regulation (EU) No 807/2010, the security referred to in that Article shall be deemed sufficient for the purposes of this Article.
3.
4.
In the case of designated organisations referred to in paragraph 1, the paying agency may accept a written guarantee from a public authority, in accordance with provisions applied in the Member States, covering an amount equal to the percentage referred to in paragraph 2, provided that that public authority undertakes to pay the amount covered by that guarantee in case the entitlement to the advance paid is not established. Member States may also provide for an instrument of equivalent effect, in accordance with the provisions applied in the Member States, on condition that it ensures the repayment of the advance granted in case the entitlement to it is not established.
5.
The total amount of advance payments granted in accordance with paragraph 2 shall not exceed 75 % of the total amount made available for each Member State in accordance with point (a) of Annex I.
F25a.
The operators selected in accordance with Article 4(4) and (6) of Regulation (EU) No 807/2010 and the designated organisations referred to in Article 27(1) of Regulation (EC) No 1234/2007 shall provide to the competent authority of the Member State which granted the advance payment the following information:
(a)
costs statements justifying, by cost item, the use of the advances until 15 October 2013 ; and
(b)
a confirmation, by cost item, of the balance of unused advances remaining on 15 October 2013 .
Member States shall fix the date of transmission of the information referred to in the first subparagraph to allow it to be included in the notification referred to in paragraph 6.