Bail has been granted to Winston Irvine, a member of the militia who is alleged to have brought a bag full of ammunition and guns to a meeting in Belfast.
Robin Workman, 51-year-old from Shore Road, Larne is charged with taking part in the alleged handover of 8 June.
He was charged with possessing a prohibited weapon and firearm possession in suspicious circumstances.
Further charges against Mr Workman include possession of a firearm and possession of ammunition with no certificate.
Winton Irvine, his coaccused, was also granted bail by a judge earlier in the week.
Judge O'Hara ruled that Mr Workman could be released from custody. He said: "Police worries are not unreasonable nor exaggerated. But he is entitled the presumption to innocence."
An earlier court heard that police officers were in Glencairn, Belfast, on June 8, planning to arrest Mr Irvine in connection with an "unrelated matter". Mr Workman was then seen pulling up in a van and getting out to interact with Mr Irvine.
Shortly after, officers stopped Mr Irvine's vehicle at Disraeli Street in downtown.
Belfast's High Court heard that they found two pistols, an ammunition magazine, and magazines in the boot of the vehicle.
Mr Irvine denied knowing anything about the contents.
Following a visit to Ballymena in County Antrim, Mr Workman was also taken into custody.
Detectives have concluded that he was the driver for the van in question, based on CCTV footage and other forensic evidence.
The police protested Mr Workman's release, saying that the incident had "all the hallmarks of a paramilitary operations".
The defence counsel emphasized that he was not the driver of the van.
Based on Mr Workman's "virtually inexistent" criminal record Mr Justice O'Hara granted bail.
Workman was required to report to the police three times per week.
The judge stated that he would have no contact with Irvine directly or indirectly.
