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Paragraph 14 Calculation of exposure to a counterparty

Original text. Later amendments are not shown.

Where an insurance company has rights in respect of an obligation to be fulfilled by a counterparty and the obligation is a secured obligation secured by:—

(a)

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;

(b)

approved securities; or

(c)

listed securities to which regulation 51(2)(a) applies which have been deposited with an approved credit institution or an approved financial institution and which in either case 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 13 above need not include the value of such rights.