Annual Report LRP 2007 - Rheinland Pfalz Bank

132 LRP 2007 CONSOLIDATED FINANCIAL STATEMENTS
OFF-BALANCE-SHEET TRANSACTIONS AND
OBLIGATIONS
(80) Contingent Liabilities and Other Obligations
as well as Contingent Assets
Contingent liabilities arise from contractually agreed
possible future obligations that are not yet likely to materialize
(probability of occurrence less than 50 %).
These obligations may arise both from guarantees given
and from credit lines granted to customers for a
specified period, but not yet drawn down. Recognized
amounts reflect the possible obligations that may arise
if credit lines or guarantees granted are utilized in the
maximum amount. The probability of an outflow of assets
is reviewed on a regular basis and, if there are indications
of a probable drawdown, a provision is recognized.
31Dec. 2007 31Dec. 2006
1 millions
Contingent liabilities
from sureties and guarantee agreements 1,270 1,070
Other contingent liabilities 0 1
1,270 1,071
Other obligations
Irrevocable loan commitments 5,289 4,945
Other obligations 0 68
Obligations from rental or leasing contracts 3 0
Payment obligations and joint liability 68 49
5,360 5,064
Total 6,630 6,135
LRP still has an additional funding obligation for
Liquiditäts- und Konsortialbank GmbH, Frankfurt
(Main), in the amount of W 13.8 million (previous year
W 13.8 million). The contributions made to the Sicherungsreserve
der Landesbanken und Girozentralen
(Guarantee Fund of the Landesbanken and Central Savings
Banks) were recalculated based on risk-oriented
principles. The resulting additional funding obligation
totals W 69.8 million. Payment of these additional contributions
can be called in immediately in the event
that an institution requires assistance.
In its capacity as guarantor, LRP continues to be liable
for the liabilities of DekaBank Deutsche Girozentrale,
Berlin and Frankfurt (Main), incurred up to 18 July
2005 (date on which the guarantor’s liability ended);
in certain cases, this depends on when the liabilities
arose and on their terms. However, LRP is not liable as
guarantor for any liabilities that arose after this date
(18 July 2005).
This also applies externally to the liabilities of Westdeutsche
ImmobilienBank, Mainz, that arose during
the time when LRP was a guarantor of this credit institution.
Pursuant to § 5 (10) of the bylaws of the Einlagensicherungsfonds
(German Deposit Protection Fund),
LRP has undertaken to indemnify the Association of
German Banks e.V., Berlin, against any and all losses
incurred by the latter as a result of assistance provided
to credit institutions that are majority-owned by LRP.