Consistency of validation rule v3017_m

Annex XVII to the Implementing Regulation (EU) 2021/451 includes the instructions for Asset Encumbrance templates.   This annex includes “2.2.3. Instructions concerning specific columns” for AE-COL templates (F 32-templates). Column “Fair value of collateral received or own debt securities issued available for encumbrance (c0040)” refers to the fair value of the collateral received by the reporting institution that are non-encumbered but are available for encumbrance since the reporting institution is permitted to sell or re-pledge it in absence of default by the owner of the collateral. The same rules apply for own debt securities issued (other than own covered bonds or securitisations).  Column “Nominal of collateral received or own debt securities issued non available for encumbrance (c0070)” refers to the nominal value of the same instruments when they are non-encumbered and also non-available for encumbrance. And point 16 indicates that “Assets are ‘non-available for encumbrance’ when they have been received as collateral and the reporting institution is not permitted to sell or re-pledge the collateral, except in the case of a default by the owner of the collateral”.   So, an asset is “available for encumbrance” when the entity is permitted to sell or re-pledge it in absence of default by the owner of the collateral and “non-available for encumbrance” when the entity is not allowed to do that unless a default had occurred.  Annex XVII also includes “6.3.1. Instructions concerning specific rows” for template AE-ADV2 (F 36). Row “of which: central bank eligible (r0220)” indicates that includes “assets held by the reporting institution that are non-encumbered and which are eligible for operations with those central banks to which the reporting institution has access”.  Therefore, validation rule v3017_m is correct.