Division 2 A bank guarantee issued by a central bank shall meet the following conditions to be accepted as collateral under Article 46(1) of Regulation (EU) No 648/2012:

it is issued by an EEA central bank or a central bank of issue of a currency in which the CCP has exposures;

it is denominated in one of the following a currencies:

1. (i)

   a currency the risk of which the CCP can demonstrate to the competent authorities that it is able to adequately manage;

2. (ii)

   a currency in which the CCP clears transactions, in the limit of the collateral required to cover the CCP’s exposures in that currency;

it is irrevocable, unconditional and the issuing central bank cannot rely on any legal or contractual exemption or defence to oppose the payment of the guarantee;

it can be honoured within the period of liquidation of the portfolio of the defaulting clearing member providing it without any regulatory, legal or operational constraint or any third party claim on it.