Authorised Firm must not recognise the effects of Credit Risk mitigation unless:
(a) all documentation relating to that mitigation is binding on all relevant parties and legally enforceable in all relevant jurisdictions; and
Authorised Firm complies with the Rules set out in this section, as applicable.
(2) Where the calculation of
Credit RWA already takes into account the Credit Risk mitigant, the provisions of this section do not apply.
(3) An Authorised Firm must, where it uses a specific Credit Risk mitigation technique for the purposes of its Capital, use the same technique for Large Exposure reduction, where it is permitted and chooses to use mitigation under the requirements in PIB chapter 4.