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Version status: Amended | Document consolidation status: Updated to reflect all known changes
Version date: 9 July 2024 - 31 December 2024
  Version 7 of 8  

Article 124 Exposures secured by mortgages on immovable property

1. A non-ADC exposure that does not meet all of the conditions set out in paragraph 3, or any part of a non-ADC exposure that exceeds the nominal amount of the lien on the property, shall be treated as follows:

(a) a non-IPRE exposure shall be risk weighted as an exposure to the counterparty that is not secured by the immovable property concerned;

(b) an IPRE exposure shall be assigned a risk weight of 150 %.

2. A non-ADC exposure, up to the nominal amount of the lien on the property, where all of the conditions set out in paragraph 3 of this Article are met, shall be treated as follows:

(a) where the exposure is secured by a residential property,

(i) a non-IPRE exposure shall be treated in accordance with Article 125(1):

(ii) an IPRE exposure shall be treated in accordance with Article 125(1) where it meets any of the following conditions:

(1) the immovable property securing the exposure is the obligor's primary residence, either where the immovable property as a whole constitutes a s

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