1.   A legal mechanism that ensures that the property under construction is completed within a reasonable timeframe, as referred to in Article 124(3), point (a)(iii)(2), of Regulation (EU) No 575/2013, shall comply with the conditions laid down in paragraphs 2 to 13.

2.   The completion guarantee shall be required by the law of the Member State where the residential property is being built.

3.   The legal mechanism requires and ensures the enforceability of a completion guarantee that applies until the construction of the residential property is completed and that is documented in writing.

4.   The completion guarantee referred to in paragraph 2 is offered by a protection provider, which is either a credit institution as referred to in Article 4(1), point (3), of Regulation (EU) No 575/2013, or an insurance undertaking as referred to in Article 4(1), point (5) of that Regulation.

5.   Where the protection provider and the lending institution belong to the same group, the completion guarantee shall not qualify as equivalent legal mechanism for the consolidated level of any group to which both the lending institution and the protection provider belong.

6.   The risk weight applicable to a direct unsecured exposure to the protection provider does not exceed 30 % of such exposure under Articles 120 to 122 of Regulation (EU) No 575/2013.

7.   The extent of the completion guarantee referred to in paragraph 2 is clearly set out in the contractual documentation between the lending institution, the protection provider and the obligor.

8.   The completion guarantee referred to in paragraph 2 is valid until the completion of the residential property under construction.

9.   Where there are several housing units within a given residential property under construction, all housing units are covered by a single completion guarantee, either provided by one single protection provider, or by multiple protections providers that are jointly and severally liable for that single completion guarantee.

10.   Under the completion guarantee, the obligation of the protection provider is activated in a timely manner, with no conditions limiting the activation of the completion guarantee. A default of the obligor shall not prevent the activation of the completion guarantee.

11.   The completion guarantee does not contain any clause which enables the protection provider, for reasons other than those under the direct control of the obligor, including an increase in the risk that the real estate developer will not complete the property under construction, to do any of the following:

Point (d) shall not apply in the case of unpredictable and unavoidable events that are beyond the control of the parties involved, provided that those events are covered by another insurance or guarantee to the benefit of the protection provider, of the lending institution or of the obligor.

12.   As soon as it is no longer ensured that the construction of the residential property will be completed within a reasonable time frame, the protection provider is obliged:

13.   Τhe obligor and the lending institution have in all relevant Member States a legally enforceable right against the protection provider for the obligations referred to in paragraph 12, points (a) or (b).