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ITEM 8 / NOTE 11. VARIABLE INTEREST ENTITIES.....................................................................................................................................................................................Commercial Loans Vehicles..............................................................................................................................................................................................We sponsor one VIE that has issued a variable funding note backed by a commercial loan collateralized by individuallife insurance assets. As of December 31, 2012, total consolidated assets and liabilities for this entity were$412 million and $188 million, respectively; our maximum exposure, representing the carrying value of the consumerloan, was $389 million.Commercial Paper Conduit..............................................................................................................................................................................................AIGFP is the primary beneficiary of Curzon Funding LLC, an asset-backed commercial paper conduit, the assets ofwhich serve as collateral for the conduit’s obligations.RMBS, CMBS, Other ABS and CDOS..............................................................................................................................................................................................Through our insurance company subsidiaries, we are a passive investor in RMBS, CMBS, other ABS and CDOsprimarily issued by domestic special-purpose entities. We generally do not sponsor or transfer assets to, or act asthe servicer to these asset-backed structures, and were not involved in the design of these entities.Through our DIB, we also invest in CDOs and similar structures, which can be cash-based or synthetic and aremanaged by third parties. The role of DIB is generally limited to that of a passive investor in structures we do notmanage.Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities.Based on the nature of our investments and our passive involvement in these types of structures, we havedetermined that we are not the primary beneficiary of these entities. We have not included these entities in the abovetables; however, the fair values of our investments in these structures are reported in Notes 6 and 7 herein.Variable Interest Entities of Business Held for Sale..............................................................................................................................................................................................Financing Vehicles..............................................................................................................................................................................................ILFC has created wholly-owned subsidiaries for the purpose of purchasing aircraft and obtaining financing secured bysuch aircraft. A portion of the secured debt has been guaranteed by the European Export Credit Agencies and theExport-Import Bank of the United States. These entities meet the definition of a VIE because they do not havesufficient equity to operate without ILFC’s subordinated financial support in the form of intercompany notes whichserve as equity. ILFC fully consolidates the entities, controls all the activities of the entities and guarantees theactivities of the entities. AIG has not included these entities in the above table as they are wholly-owned and thereare no other variable interests other than those of ILFC and the lenders. See Note 15 herein for further information.Leasing Entities..............................................................................................................................................................................................ILFC has created wholly-owned subsidiaries for the purpose of facilitating aircraft leases with airlines. The entitiesmeet the definition of a VIE because they do not have sufficient equity to operate without ILFC’s subordinatedfinancial support in the form of intercompany notes which serve as equity. ILFC fully consolidates the entities,controls all the activities of the entities and fully guarantees the activities of the entities. AIG has not included theseentities in the above table as they are wholly owned and there are no other variable interests in the entities otherthan those of ILFC...................................................................................................................................................................................................................................276 AIG 2012 Form 10-K