15.—(1) A ring-fenced body may incur a financial institution exposure provided that both the following conditions are satisfied—
(a)the purpose of the transaction giving rise to the exposure is—
(i)to provide finance or make a payment in connection with the supply of goods or services by or to a person or an undertaking which is not a relevant financial institution; or
(ii)to guarantee or otherwise provide an indemnity or security for the obligations of a customer of the ring-fenced body or a third party in connection with the supply of goods or services by or to a person or an undertaking which is not a relevant financial institution;
(b)the ring-fenced body enters into an agreement to give effect to the transaction which specifies—
(i)the supplies of goods or services to which the transaction relates, and
(ii)the maximum payments which the ring-fenced body may be required to make under the agreement.
(2) For the purpose of paragraph (1)(b)(ii), the maximum payments payable under the agreement may be expressed—
(a)as a defined sum, or
(b)as a multiple of an average price of a commodity, where the average price is determined by reference to prices quoted on a specified index of prices for that commodity over a specified period, and for these purposes “specified” means specified in the agreement.
Commencement Information
I1Art. 15 in force at 1.1.2019, see art. 1(3)