in force 2025-01-01 MODIFIED+748 −451§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
Paragraph 1(1)(a) now refers to default of or non-payment by the obligor rather than by the counterparty, and the standalone requirement that the guarantor's payment obligation not be subject to first pursuing the obligor has been moved out of point (a) into a separate sentence following point (c), with the residential mortgage loan carve-out also restructured to cross-reference paragraph 1 point (a) rather than the first subparagraph as a whole.
Paragraph 2's introductory wording now also references Article 213(1), point (c)(iii), alongside paragraph 1 point (a), and point (a) of paragraph 2 has been rewritten to specify that the provisional payment right arises pursuant to the qualifying default of or non-payment by the original obligor, with the sub-points (i) and (ii) rephrased to refer to "the provisional payment" instead of "it".
Point (b) of paragraph 2 adds a requirement that the justification for relying on the guarantee's effects be properly documented and subject to dedicated internal approval and audit procedures, and refers to "the competent authority" rather than "competent authorities".
Cited: Art. 215, v1 · Art. 215, v2
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 215
Additional requirements for guarantees
1. Guarantees shall qualify as eligible unfunded credit protection where all the conditions in Article 213 and all the following conditions are met:
(a) on the qualifying default of or non-payment by the counterparty, obligor, the lending institution has the right to pursue, in a timely manner, the guarantor for any monies due under the claim in respect of which the protection is provided and the payment by the guarantor shall not be subject to the lending institution first having to pursue the obligor;
In the case of unfunded credit protection covering residential mortgage loans, the requirements in Article 213(1)(c)(iii) and in the first subparagraph of this point have only to be satisfied within 24 months; provided;
(b) the guarantee is an explicitly documented obligation assumed by the guarantor;
(c) either of the following conditions is met:
(i) the guarantee covers all types of payments the obligor is expected to make in respect of the claim;
(ii) where certain types of payment are excluded from the guarantee, the lending institution has adjusted the value of the guarantee to reflect the limited coverage.
The payment by the guarantor shall not be subject to the lending institution first having to pursue the obligor.
In the case of unfunded credit protection covering residential mortgage loans, the requirements in Article 213(1), point (c)(iii), and in the first subparagraph, point (a), of this paragraph, shall only be required to be satisfied within 24 months.
2. In the case of guarantees provided in the context of mutual guarantee schemes or provided by or counter-guaranteed by entities as listed in Article 214(2), the requirements in paragraph 1, point (a) of paragraph 1 (a), of this Article and in Article 213(1), point (c)(iii), shall be considered to be satisfied where either of the following conditions is met:
(a) pursuant to the qualifying default of or non-payment by the original obligor, the lending institution has the right to obtain in a timely manner a provisional payment by the guarantor that meets both the following conditions:
(i) it the provisional payment represents a robust estimate of the amount of the loss, loss that the lending institution is likely to incur, including losses resulting from the non-payment of interest and other types of payment which the borrower is obliged to make, that make;
(ii) the lending institution is likely to incur;
(ii) it provisional payment is proportional to the coverage of the guarantee;
(b) the lending institution can demonstrate to the satisfaction of the competent authorities authority that the effects of the guarantee, which shall also cover losses resulting from the non-payment of interest and other types of payments which the borrower is obliged to make, justify such treatment. treatment; that justification shall be properly documented and subject to dedicated internal approval and audit procedures.