---
kind: "section"
citation: "12 C.F.R. § 217.45"
title: "12"
number: "217.45"
heading: "Recognition of credit risk mitigants for securitization exposures."
url: "https://uscodex.org/cfr/12/217.45"
---

# §217.45. Recognition of credit risk mitigants for securitization exposures.

- (a) **General.**
  - (1) An originating Board-regulated institution that has obtained a credit risk mitigant to hedge its exposure to a synthetic or traditional securitization that satisfies the operational criteria provided in [§ 217.41](/cfr/12/217.41.md) may recognize the credit risk mitigant under §§ [217.36](/cfr/12/217.36.md) or [217.37](/cfr/12/217.37.md), but only as provided in this section.
  - (2) An investing Board-regulated institution that has obtained a credit risk mitigant to hedge a securitization exposure may recognize the credit risk mitigant under §§ [217.36](/cfr/12/217.36.md) or [217.37](/cfr/12/217.37.md), but only as provided in this section.
- (b) **Mismatches.** A Board-regulated institution must make any applicable adjustment to the protection amount of an eligible guarantee or credit derivative as required in § [217.36(d)](/cfr/12/217.36.md?p=d), [(e)](/cfr/12/217.36.md?p=e), and [(f)](/cfr/12/217.36.md?p=f) for any hedged securitization exposure. In the context of a synthetic securitization, when an eligible guarantee or eligible credit derivative covers multiple hedged exposures that have different residual maturities, the Board-regulated institution must use the longest residual maturity of any of the hedged exposures as the residual maturity of all hedged exposures.

## Notes

### Authority

Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 116-136, 134 Stat. 281.

### Source

Source: Reg. Q, 78 FR 62157, 62285, Oct. 11, 2013, unless otherwise noted.