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Frequently Asked Questions - #15

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FAQ-15

Is accounts payable netted out of the Mark-to-Market Exposure Amount for purposes of calculating the Total Exposure Amount?


Yes. The Total Exposure Amount (“TEA”) reflects the total credit exposure of the BGS-RSCP Supplier to the EDC arising under all contracts with the BGS-RSCP Supplier.  To determine the TEA, the Mark-to-Market (“MtM”) Exposure Amount (calculated by deducting the accounts payable from the total MtM credit exposure) for all BGS-RSCP Agreements that a BGS-RSCP Supplier holds with a given EDC are summed and added to the credit exposures under any BGS-CIEP Agreement that the Supplier holds with the same EDC.  Whenever the sum of the MtM Exposure Amounts over all agreements yields a negative number the TEA is deemed to be zero.



8/20/2024, in Credit.

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