Article 21
Calculation of interest payments or part of interest payments that occur up to and including their reset date
1.
Institutions shall calculate the contribution of interest payments occurring up to the repricing date, including that date, to the net interest income, by allocating to the repricing time buckets referred to in point 4 of the Annex, in addition to the allocation referred to in Articles 19 and 20, the interest payments of the instruments referred to in Articles 6 to 12, provided that those interest payments meet the following conditions:
(a)
the size of the interest payment is known and fixed, with no possibility for the payment to change due to a movement in interest rates;
(b)
the interest payment is expected to be paid within the net interest income time horizon referred to in Article 18, first subparagraph.
2.
For floating rate instruments, where the interest payment occurs after the repricing date, institutions shall apply paragraph 1 of this Article only to the part of the interest payment that represents the commercial margin.