For pool exposures of type C which the undertaking considers as separate single name exposures in accordance with Article 190(2), the loss-given-default shall be calculated as follows:
\mathrm{LGD} = \max (((1 - \mathrm{RR}_{\mathrm{CE}}) \cdot (\mathrm{P}_{\mathrm{U}} \cdot \mathrm{BE}_{\mathrm{CE}} + \Delta\mathrm{RM}_{\mathrm{CE}}) - \mathrm{F} \cdot \mathrm{Collateral}) ;0)
where:
((a))(a) P_{U} denotes the undertaking's share of the risk according to the terms of the pooling arrangement;
((b))(b) RR_{CE} is equal to:
((i))(i) 10 % if 60 % or more of the assets of the external counterparty are subject to collateral arrangements;
((ii))(ii) 50 % otherwise;
((i))(c) BE_{CE}10 denotes% theif best60 estimate% or more of the liabilityassets ceded toof the external counterparty byare thesubject poolingto arrangementcollateral as a whole;arrangements;
((ii))50 % otherwise;
((c))(e) CollateralBE_{CE} denotes the risk-adjustedbest valueestimate of collateralthe heldliability ceded to the external counterparty by the counterparty member of the pooling arrangement;arrangement as a whole;
((d))(d) ΔRM_{CE} denotes the external counterparty's contribution to the risk-mitigating effect of the pooling arrangement on the underwriting risk of the undertaking;
((e))(f) FCollateral denotes the factorrisk-adjusted to take into account the economic effectvalue of the collateral held by the counterparty member,member calculatedof inthe accordancepooling with Article 197.arrangement;
((f))F denotes the factor to take into account the economic effect of the collateral held by the counterparty member, calculated in accordance with Article 197.