application of credit conversion factor in accordance with article 235

How shall institution calculate risk-weighted exposure amounts for off-balance-sheet exposures with unfunded credit protection, to which those institutions apply the standardized approach? How shall credit conversion factor be applied to the formula specified in article 235 before the application of risk weight?

In accordance with article 235 institution shall calculate the risk-weighted exposure amounts for exposures with unfunded credit protection to which those institutions apply the standardized approach in accordance with the formula: Max{0, E-Ga}*r + Ga*g Where E, in case of off-balance-sheet exposures, shall be 100% of its exposure value rather than the exposure value indicated in article 112(2). In order to calculate risk-weighted exposure amounts for off-balance-sheet exposures with unfunded credit protection, before applying the factor r to the unsecured part of exposure and before applying the factor g to the secured part of exposure, shall we apply the specific credit conversion factor for the off-balance-sheet exposure as listed in Annex 1 of Reg UE 575/2013? Or does the article require the institution to always apply a credit conversion factor of 100%, not only to calculate E and Ga but also to calculate the post-CCF exposure to which r and g should be applied to calculate the RWA amount? Example: off-balance-sheet exposure: 100 unfunded credit protection: 80 specific credit conversion factor for the off-balance-sheet exposure as listed in Annex 1: 20% r=75% (the risk weight of exposures to the obligor) g=20% (the risk weight applicable to a direct exposure to the protection provider) Case1:  RWA: Max{0, E-Ga}*r + Ga*g= Max(0, 100-80)*75%+80*20%=15+16=31 Case2: RWA: Max{0, E-Ga}*CCF*r + Ga*CCF*g= Max(0, 100-80)*20%*75%+80*20%*20%=3+3,2=6,2 Which is the most correct application for the specific credit conversion factor for off-balance-sheet exposure? In case of application of Case1 risk weighted asset calculated for the off-balance-sheet exposure witht an unfunded credit protection could be higher of risk weighted asset calculated for the same off-balance-sheet exposure without an unfunded credit protection. In fact, in this situation: RWA= E*CCF*r=100*20%*75%=15