Not dependent on property cash flowsNot dependent on property cash flows

Not dependent on property cash flows

1. If the servicing and repayment of a commercial property exposure does not meet the criteria for dependence as set out in paragraph 23 of this Attachment, an ADI must apply the risk weights in Table 4 based on counterparty type, LVR and the classification of the loan as standard or non-standard.

2. Risk weights for commercial property exposures – not dependent on property cash flows

<table cellspacing="0" cellpadding="0" style="margin-bottom:0pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td rowspan="2" style="width:109.45pt; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; page-break-after:avoid"><span style="font-weight:bold">Counterparty</span></p></td><td colspan="2" style="width:284.05pt; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">Risk weight (%)</span></p></td></tr><tr><td style="width:136.6pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">LVR ≤ 60</span></p></td><td style="width:136.65pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">LVR &gt; 60 or non-standard</span></p></td></tr><tr><td style="width:109.45pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; page-break-after:avoid"><span style="font-weight:bold">Rated corporate</span></p></td><td style="width:136.6pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>60, or</span></p><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>the risk weights in Table 10</span></p></td><td style="width:136.65pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>Risk weights in Table 10</span></p></td></tr><tr><td style="width:109.45pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; page-break-after:avoid"><span style="font-weight:bold">All other counterparties</span></p></td><td style="width:136.6pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>60</span></p></td><td style="width:136.65pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>According to applicable risk weight in Attachment B</span></p></td></tr></tbody></table>