(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