http://www.legislation.gov.uk/eur/2013/575/article/229Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance)Regulation (EU) No 575/2013 of the European Parliament and of the CouncilRegulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance)King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013R0575-20201228texttext/xmlen2026-01-13Expert Participation2026-01-01 PART THREE <Substitution ChangeId="O000002M002" CommentaryRef="c000001" Correction="true">CAPITAL REQUIREMENTS</Substitution> TITLE II <Substitution ChangeId="O000002M002" CommentaryRef="c000001" Correction="true">CAPITAL REQUIREMENTS FOR CREDIT RISK</Substitution> CHAPTER 4 <Substitution ChangeId="O000002M002" CommentaryRef="c000001" Correction="true">Credit risk mitigation</Substitution> Section 4 <Substitution ChangeId="O000002M002" CommentaryRef="c000001" Correction="true">Calculating the effects of credit risk mitigation</Substitution> Sub-Section 1 <Substitution ChangeId="O000002M002" CommentaryRef="c000001" Correction="true">Funded credit protection</Substitution> <Substitution ChangeId="O000002M002" CommentaryRef="c000001" Correction="true">Valuation principles for other eligible collateral under the IRB Approach </Substitution> Article 229 1 For immovable property collateral, the collateral shall be valued by an independent valuer at or at less than the market value. An institution shall require the independent valuer to document the market value in a transparent and clear manner. If rigorous criteria are in force at the time in the United Kingdom for the assessment of the mortgage lending value the immovable property may instead be valued by an independent valuer at or at less than the mortgage lending value. Institutions shall require the independent valuer not to take into account speculative elements in the assessment of the mortgage lending value and to document that value in a transparent and clear manner. The value of the collateral shall be the market value or mortgage lending value reduced as appropriate to reflect the results of the monitoring required under Article 208(3) and to take account of any prior claims on the immovable property. 2 For receivables, the value of receivables shall be the amount receivable. 3 Institutions shall value physical collateral other than immovable property at its market value. For the purposes of this Article, the market value is the estimated amount for which the property would exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction. Substituted by Corrigendum to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).Words in Art. 229(1) substituted (31.12.2020) by The Capital Requirements (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1401), regs. 1(3), 143 (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)