Article 402 › 2

For the calculation of exposure values for the purposes of Article 395, an institution may reduce the value of an exposure or any part of an exposure fully secured by real estate property in accordance with Article 126(1) by the pledged amount of the market or mortgage lending value of the property concerned but not more than 50 % of the market or 60 % of the mortgage lending value in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions, if all of the following conditions are met: (a) the competent authorities of the Member States have not set a higher risk weight than 50 % for exposures or parts of exposures secured by commercial real estate in accordance with Article 124(2); (b) the exposure is fully secured by: (i) mortgages on offices or other commercial premises; or (ii) offices or other commercial premises and the exposures related to property leasing transactions; (c) the requirements in Article 126(2)(a), Article 208 and Article 229(1) are met; (d) the commercial property is fully constructed.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04