Paragraph 4

The permitted counterparty exposure limit is—

• 1. (a)

     where the counterparty is an individual or an unincorporated body of persons, 5 per cent. of the business amount;

  2. (b)

     where the counterparty is a counterparty of the type mentioned in sub-paragraph (e) in the definition of counterparty, 5 per cent. of the business amount;

  3. (c)

     where the counterparty is a body corporate or group, each of—

     1. (i)

        20 per cent. of the business amount;

     2. (ii)

        10 per cent. of the business amount where the exposure arises otherwise than by reason that debts are due, or are to become due, as a result of short term deposits made with an approved credit institution; and

     3. (iii)

        5 per cent. of the business amount where the exposure is other than to bodies which are approved counterparties.