1. 13.1 A Finance Company’s Credit Exposure to a single borrower or group of Related Entities is considered as a Large Credit Exposure, where its value is equal to or exceeds 7% of the Finance Company’s Aggregate Capital Funds. For the purpose of calculating the value of a Large Credit Exposure, a Finance Company may consider whether to deduct any of the following items:
    
   1. Provisions;
       
   2. Cash collaterals;
       
   3. Bank guarantees from U.A.E. Banks; and
       
   4. Sovereign guarantees.
       

   The items listed under the letters b, c and d of this Article must be legally enforceable.
   
   13.2 The aggregate amount of Large Credit Exposures must not exceed 100% of the Aggregate Capital Funds of a Finance Company.

2. 13.3 In addition to Article 13.2, the Central Bank has defined maximum permissible Credit Exposure limits, as shown in Table 1 below.
    

Table 1: Maximum Credit Exposure Limits

1. 13.4 Where a Principal Shareholder is also a member of the board of directors of a Finance Company, Credit Exposures will be considered within the Principal Shareholders' Credit Exposure limits.