20-55 In determining the risk-adjusted value of the on-balance-sheet credit equivalent amounts of the contingent guaranty contracts,the risk weights are determined by the credit rating of the underlying counterparty of the off-balance-sheet activity.

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This statement is true. The risk weights for on-balance-sheet credit equivalent amounts of contingent guaranty contracts are determined based on the credit rating of the underlying counterparty of the off-balance-sheet activity. This is in accordance with the Basel III framework for bank regulation.

20-55 in Determining the Risk-Adjusted Value of the On-Balance-Sheet Credit