Directive 2006/48/EC of the European Parliament and of the council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (Text with EEA relevance) (repealed) (c. 48)

ANNEX VIII U.K. CREDIT RISK MITIGATION

PART 3 U.K. Calculating the effects of credit risk mitigation

1. FUNDED CREDIT PROTECTION U.K.

1.7. Other funded credit protection U.K.

1.7.1. Deposits with third party institutions U.K.

79. Where the conditions set out in Part 2, point 12 are satisfied, credit protection falling within the terms of Part 1, point 23 may be treated as a guarantee by the third party institution. U.K.

1.7.2. Life insurance policies pledged to the lending credit institution U.K.

80. Where the conditions set out in Part 2, point 13 are satisfied, credit protection falling within the terms of Part 1, point 24 may be treated as a guarantee by the company providing the life insurance. The value of the credit protection recognised shall be the surrender value of the life insurance policy. U.K.

1.7.3. Institution instruments repurchased on request U.K.

81. Instruments eligible under Part 1, point 25 may be treated as a guarantee by the issuing institution. U.K.

82. The value of the credit protection recognised shall be the following: U.K.

(a)

where the instrument will be repurchased at its face value, the value of the protection shall be that amount;

(b)

where the instrument will be repurchased at market price, the value of the protection shall be the value of the instrument valued in the same way as the debt securities specified in Part 1, point 8.