# The Friendly Societies (Insurance Business) (Amendment) Regulations 1996, Paragraph 15: Calculation of exposure to a counterparty


Where a society has rights in respect of an obligation to be fulfilled by a counterparty and—
(a) the obligation is a secured obligation which—
(i) is secured by cash deposited with, or a letter of credit established with, or securities issued by, or a guarantee provided by, an approved credit institution or an approved financial institution; and
(ii) is due to be fulfilled within 12 months of the relevant date; or
(b) the obligation is a secured obligation which is secured by listed securities which are readily realisable or by approved securities which in either case—
(i) have been deposited with an approved credit institution, an approved financial institution or an approved investment firm; and
(ii) are beneficially owned by the counterparty but will not be available for the benefit of creditors generally in the event of the winding-up of the counterparty,
the aggregation required by paragraph 14 above need not include the value of such rights.

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Source: https://www.legislation.gov.uk/uksi/1996/3008/schedule/1/paragraph/15 (the official version)
Page: https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/schedule-1/paragraph-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.