IBANK 8.4.28 Treatment of deposits and PSIAs pledged as security

(1) This rule applies to a deposit or PSIA that is pledged as security for a financing facility if:
(a) the facility will not mature or be settled within the relevant 30-calendar-day period; and
(b) the pledge is subject to a legally enforceable contract under which the deposit cannot be withdrawn before the facility is fully settled or repaid.
(2) If no part of the facility has been drawn, the runoff rate is the higher of:
(a) the rate that would apply under rule 8.4.23 or 8.4.27 (as the case requires); and
(b) a rate equal to the rate applicable to the facility under rule 8.4.39.
(3) However, if some part of the facility has been drawn, only that part of the deposit or PSIA in excess of the outstanding balance of the facility is to be counted. The applicable runoff rate is the rate that applies under rule 8.4.23 or 8.4.27 (as the case requires).
Inserted by QFCRA RM/2018-2 (as from 1st May 2018).