Article 4
1. The Member State shall determine the rate of reduction to be applied to the abovementioned contracts where the overall quantity covered by contracts presented exceeds that laid down in Article 1. 2. The Member State shall adopt the administrative provisions needed to approve the abovementioned contracts by 15 March 2001, shall specify the rate of reduction applied and the quantity of wine accepted per contract and shall stipulate that the producer can cancel the contract where the quantity to be distilled is reduced. The Member State shall notify the Commission before 20 March 2001 of the quantities of such wine covered by contracts approved. 3. The wine shall be delivered to the distilleries by 30 June 2001 at the latest. The alcohol obtained may be delivered to the intervention agency by 30 November 2001 at the latest. 4. Securities shall be released in proportion to the quantities delivered where the producer provides proof of delivery to the distillery. 5. The security shall be forfeit where no delivery is made within the time limit laid down. 6. The Member State may limit the number of contracts that individual producers can conclude under the distillation operation in question.