---
kind: "section"
citation: "12 C.F.R. § 1240.35"
title: "12"
number: "1240.35"
heading: "Off-balance sheet exposures."
url: "https://uscodex.org/cfr/12/1240.35"
---

# §1240.35. Off-balance sheet exposures.

- (a) **General.**
  - (1) An Enterprise must calculate the exposure amount of an off-balance sheet exposure using the credit conversion factors (CCFs) in [paragraph (b)](#b) of this section.
  - (2) Where an Enterprise commits to provide a commitment, the Enterprise may apply the lower of the two applicable CCFs.
  - (3) Where an Enterprise provides a commitment structured as a syndication or participation, the Enterprise is only required to calculate the exposure amount for its pro rata share of the commitment.
  - (4) Where an Enterprise provides a commitment or enters into a repurchase agreement and such commitment or repurchase agreement, the exposure amount shall be no greater than the maximum contractual amount of the commitment or repurchase agreement, as applicable.
- (b) **Credit conversion factors—**
  - (1) **Zero percent CCF.** An Enterprise must apply a zero percent CCF to the unused portion of a commitment that is unconditionally cancelable by the Enterprise.
  - (2) **20 percent CCF.** An Enterprise must apply a 20 percent CCF to the amount of commitments with an original maturity of one year or less that are not unconditionally cancelable by the Enterprise.
  - (3) **50 percent CCF.** An Enterprise must apply a 50 percent CCF to:
    - (i) The amount of commitments with an original maturity of more than one year that are not unconditionally cancelable by the Enterprise; and
    - (ii) **Guarantees on exposures to the other Enterprise in commingled securities.**
  - (4) **100 percent CCF.** An Enterprise must apply a 100 percent CCF to the amount of the following off-balance sheet items and other similar transactions:
    - (i) Guarantees, except guarantees included in [paragraph (b)(3)(ii)](#b-3-ii) of this section;
    - (ii) Repurchase agreements (the off-balance sheet component of which equals the sum of the current fair values of all positions the Enterprise has sold subject to repurchase);
    - (iii) Off-balance sheet securities lending transactions (the off-balance sheet component of which equals the sum of the current fair values of all positions the Enterprise has lent under the transaction);
    - (iv) Off-balance sheet securities borrowing transactions (the off-balance sheet component of which equals the sum of the current fair values of all non-cash positions the Enterprise has posted as collateral under the transaction); and
    - (v) **Forward agreements.**

## Notes

### Amendments

[85 FR 82198, Dec. 17, 2020, as amended at 88 FR 83480, Nov. 30, 2023]

### Authority

Authority: 12 U.S.C. 4511, 4513, 4513b, 4514, 4515, 4517, 4526, 4611-4612, 4631-36.

### Source

Source: 85 FR 82198, Dec. 17, 2020, unless otherwise noted.

### Amendments

[85 FR 82198, Dec. 17, 2020, as amended at 88 FR 83480, Nov. 30, 2023]