Single and aggregate risk limits
5.—(1)  A financial guarantee insurer shall limit its net exposure under any single financial guarantee insurance policy issued by the insurer in Singapore as follows:
(a)for asset-backed obligations — the net exposure to each of the supporting assets shall not exceed 10% of the financial guarantee insurer’s qualified capital;
(b)for infrastructure obligations that are issued in respect of projects or facilities built, owned or operated (whether at the time of construction or afterwards) by or on behalf of a government unit and for government obligations — the net exposure to the average annual debt service on the obligation shall not exceed 15% of the financial guarantee insurer’s qualified capital, and the net exposure to the principal amount of the obligations shall not exceed 100% of the financial guarantee insurer’s qualified capital;
(c)for infrastructure obligations that are issued in respect of projects or facilities built, not owned or operated by a government unit — the net exposure to the average annual debt service on the obligations shall not exceed 10% of the financial guarantee insurer’s qualified capital, and the net exposure to the principal amount of the obligations shall not exceed 75% of the financial guarantee insurer’s qualified capital;
(d)for real estate obligations that do not otherwise constitute asset-backed obligations — the net exposure to the principal amount of the obligations less 50% of the appraised value of the underlying real estate shall not exceed 10% of the financial guarantee insurer’s qualified capital; and
(e)for corporate and other obligations — the net exposure to the principal amount shall not exceed —
(i)25% of the financial guarantee insurer’s qualified capital for secured obligations; and
(ii)15% of the financial guarantee insurer’s qualified capital for unsecured obligations.
[S 360/99 wef 01/09/1999]
(2)  A financial guarantee insurer shall maintain at all times qualified capital which in the aggregate shall be not less than the sum of —
(a)1% or 1/100th of the aggregate net exposure to asset-backed obligations;
(b)1.3333% or 1/75th of the aggregate net exposure to infrastructure obligations, government obligations, and real estate obligations that do not otherwise constitute asset-backed obligations;
(c)2% or 1/50th of the aggregate net exposure to other obligations which are secured; and
(d)4% or 1/25th of the aggregate net exposure to other obligations which are unsecured.