the Pfandbrief Act requires that Pfandbriefe are covered on a net present value basis even in the
event of severe interest rate changes or currency fluctuations. The issuer has to provide an overcollateralisation
of at least 2% after stress tests which have to be carried out weekly. Both the maturity of outstanding
Pfandbriefe and the fixed-interest periods of the cover pool are disclosed on a quarterly basis. Details about
the calculation are regulated in a special statutory order Net Present Value (Barwertverordnung).