1. In addition to the exposure value of repurchase transactions, securities or commodities lending or borrowing transactions, long settlement transactions and margin lending transactions including those that are off-balance sheet in accordance with Article 429(5), institutions shall include in the exposure measure an add-on for counterparty credit risk determined in accordance to paragraph 2 or 3 of this Article, as applicable.
2. For the purposes of paragraph 1, for transactions with a counterparty which are not subject to a master netting agreement that meets the conditions laid down in Article 206 the add-on (Ei*) shall be determined on a transaction-by-transaction basis in accordance with the following formula:
Ei is the fair value of securities or cash lent to the counterparty under transaction i;
Ci is the fair value of cash or securities received from the counterparty under transaction i.