Paragraph 17 Excess concentration with a number of counterparties

Where there is exposure to a counterparty of the type mentioned in paragraph 4(c)(ii) above which exceeds 5 per cent. of the business amount, 40 per cent. of the business amount shall be deducted from the aggregate of such exposures (each of which, for this purpose, shall be taken not to exceed 10 per cent. of the business amount). The amount so arrived at shall be the excess exposure to a number of counterparties. Where this amount is negative it shall be taken to be zero.