Loan commitments, financial guarantees and other commitments received in F 9.2

Background provided by the submitter · verbatim

Based on Annex V, Part II, paragraph 119.: “In template 9.2, for loan commitments received, the nominal amount shall be the total undrawn amount that the counterparty has committed to lend to the institution. For other commitments received, the nominal amount shall be the total amount committed by the other party in the transaction. For financial guarantees received, the ‘maximum amount of the guarantee that can be considered’ shall be the maximum amount the counterparty would have to pay if the guarantee is called on. Where a financial guarantee received has been issued by more than one guarantor, the guaranteed amount shall be reported only once in this template; the guaranteed amount shall be allocated to guarantor that is more relevant for the mitigation of credit risk.”

For us it isn’t understandable what is considered as “

…the counterparty would have to pay if the guarantee is called on

” and what is considered as "

...total amount committed by the other party in the transaction

"?

Should be presented only “irrevocable”, or can be also “revocable” received guarantees and other commitments included in F 9.2?

For example, in a process of placement of loans, credit institution can ask some securitization from co-debtors or guarantor as:

Statement of approval for attachment of income => is a private document certified by a notary public whereby a guarantor/co-debtor gives his/her approval for attachment on his/her salary or other regular monetary income, except that part thereof which is exempt from enforcement, for the purpose of collecting a credit institution's claim. Approval for attachment of the part of salary or other regular monetary income exempt from enforcement does not have effect.

Promissory note => is a private document certified by a notary public whereby a guarantor/co-debtor gives his/her approval for attachment of all his/her accounts with credit institutions and for the payment of money from these accounts to a credit institution, for the purpose of collecting a credit institution's claim. A promissory note can serve as a writ of enforcement on the basis of which enforcement may be sought on guarantor/co-debtor and other subjects of enforcement.

Bill of exchange => a security to a certain sum which gives the holder the right to collect that sum from the person designated in it as the debtor.

Tied Insurance policies (e.g. Life insurance policies) => policy for Insurance company which will be paid directly to institutions if insured cases happened and if all conditions prescribed in Insurance policy are met.

The existence of securitization automatically doesn’t mean that credit institution will successfully have collection. For example, co-debtor doesn’t have salary which is exempt from enforcement, or insured cases happened, but it isn’t in accordance with exited conditions. In that case, credit institution can’t have a sufficient collection.