19. For the purposes of Article 55 of the RTS on IRB assessment methodology and to ensure …

For the purposes of Article 55 of the RTS on IRB assessment methodology and to ensure compliance with the general principles on legal certainty and collateral valuation in paragraphs 17 and 18, the internal requirements for legal certainty and collateral valuation established by institutions in accordance with Article 181(1)(f) of Regulation (EU) No 575/2013 should be fully consistent with the following requirements of Chapter 4, Section 3 of Title II in Part Three of that Regulation:

• (a) For financial collateral, they should be consistent with Article 207(3) and 207(4) letter (d) of that Regulation.
• (b) For immovable property collateral, and for lease exposures treated as collateralised where the asset leased is an immovable property, they should be consistent with Article 208(2) and (3) of that Regulation.

For the purposes of valuing an immovable property collateral and reviewing its value under the conditions specified in Article 208(3)(b) of that Regulation, institutions should ensure the following:

• (i) The immovable property collateral is valued by an independent valuer at or at less than the market value. In those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions, the property may instead be valued by an independent valuer at or at less than the mortgage lending value. Institutions should require the independent valuer not to take into account speculative elements in the assessment of the mortgage lending value.
• (ii) The independent valuer documents the market value or mortgage lending value in a transparent and clear manner.
• (iii) The value of the collateral is the market value or the mortgage lending value reduced as appropriate to reflect the result of the monitoring and to take into account any prior claims on the property.
• (iv) The independent valuer should possess the necessary qualifications, ability and experience to execute a valuation and should be independent from the credit decision process. As long as an employee of the institution meets all the aforementioned conditions, that employee can be considered an independent valuer.
• (c) For receivables, they should be consistent with Article 209(2) of that Regulation. The value of the receivable should be the amount receivable.
• (d) For other physical collateral, and for lease exposures treated as collateralised where the asset leased is other than immovable property, they should be consistent with Article 210(a) and (g) of that Regulation. For the purposes of conducting valuation and revaluation of the collateral in accordance with Article 210(g) of that Regulation, institutions should value physical collateral at its market value, which should be the estimated amount for which the collateral would exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction.
• (e) For other funded credit protection, they should be consistent with Article 212(1)(a) and Article 212(2)(f) of that Regulation.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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