6.1 How to calculate Off-Balance Sheet Liability Risk Component

(1) The Off-Balance Sheet Liability Risk Component must be calculated by applying, to the face value of any credit substitute it has issued (including letters of credit, guarantees and put options serving as guarantees) the asset risk component that would be applied to the obligation or asset over which the credit substitute has been written.

(2) Where the credit substitute is supported by collateral or a guarantee, the provisions of paragraph 4.5 (Effect of guarantee or collateral) may be applied by the AIFC-Incorporated Takaful Operator or any of the Takaful Funds managed by it.