Sec. 117.2. General rule

(a) In computing the amount of loans of a bank outstanding to a person under section 103.1 of the Banking Law or to a borrower under section 235.8-c of the Banking Law at any specific time, the credit exposures of the bank arising from derivative transactions with respect to such person or borrower shall be included.

(b) Such credit exposures shall be calculated as the sum of the bank’s credit exposure to such person or borrower as a counterparty arising from derivative transactions other than credit derivatives plus the bank’s credit exposure to such person or borrower as a counterparty arising from credit derivatives plus, where such person or borrower is the obligor on a reference exposure, the bank’s credit exposure with respect to such person or borrower as obligor on such reference exposure arising from credit derivatives.