21. Obligor-contributed equity is the total amount of investments qualified according to paragraph …

Obligor-contributed equity is the total amount of investments qualified according to paragraph 20 that the obligor has already contributed, reduced by any excess costs currently expected for completing the immovable property. Excess costs are quantified by the difference, if positive, between total costs for completing the immovable property, both already incurred and still expected costs, and the property value upon completion measured as required by Article 229(1) CRR, i.e. as if the immovable property was already completed, taking into account the life of the loan and the potential for the current market value for such completed property to be significantly above the value that would be sustainable over the life of the loan. For the purposes of this definition, “excess costs” refers to the amount by which the total costs for completing the immovable property exceed the property value upon completion, and not the amount by which the costs exceed the estimated costs at origination.

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1. Overview

1.1 References

• Article 229 1.

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/