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1. Each Member State that decides to grant the basic income support on the basis of payment entitlements shall manage a national reserve.

2. By way of derogation from paragraph 1 of this Article, where a Member State decides to differentiate the basic income support in accordance with Article 22(2), it may decide to have a reserve for each group of territories referred to in that Article.

3. Member States shall ensure that payment entitlements from the reserve be only allocated to active farmers.

4. Member States shall use their reserve as a matter of priority to allocate payment entitlements to the following farmers:

(a) young farmers who have newly set up a holding for the first time;

(b) new farmers.

5. A Member State shall allocate payment entitlements to, or increase the value of the existing payment entitlements of, active farmers who are entitled by virtue of a final court ruling or by virtue of a final administrative act of the competent authority of that Member State. It shall ensure that those active farmers receive the number and value of payment entitlements established in that ruling or act at a date to be fixed by that Member State.

6. Member States shall ensure that the reserve is replenished by a linear reduction of the value of all payment entitlements where the reserve is insufficient to cover the allocation of payment entitlements in accordance with paragraphs 4 and 5.

7. Member States may lay down additional rules for the use of the reserve, including additional categories of farmer to be served from the reserve provided the priority groups referred to in paragraphs 4 and 5 have been served, and for the cases that would trigger the replenishment of the reserve. Where the reserve is replenished by linear reduction of the value of payment entitlements, such linear reduction shall apply to all payment entitlements at national level or, where Member States apply the derogation provided for in paragraph 2, at the level of the relevant group of territories referred to in Article 22(2).

8. Member States shall fix the value of new payment entitlements allocated from the reserve at the national average value of payment entitlements in the year of allocation or at the average value of payment entitlements for each group of territories referred to in Article 22(2) in the year of allocation.

9. Member States may decide to increase the value of the existing payment entitlements up to the national average value in the year of allocation or up to the average value for each group of territories referred to in Article 22(2).