Section 230-RICR-40-10-1.4 - DefinitionsA. Unless otherwise provided by this Regulation or unless the context clearly requires otherwise, terms used in this Regulation shall have the same meaning as the terms defined in R.I. Gen. Laws § 19-1-1 or in any other relevant provision of R.I. Gen. Laws Title 19. All definitions herein may be superseded by applicable amendments by the Rhode Island Financial Institution's primary federal regulatory authority and any such amendment shall apply, as relevant and applicable, in that specific context. 1. "Credit exposure" (to a counterparty in connection with a Derivative Transaction) shall be determined based on an amount that the Financial Institution reasonably determines under the terms of the derivative or otherwise would be its loss were the counterparty to default on that date, taking into account any netting and collateral arrangements and any guarantees or other credit enhancements; provided, that the Financial Institution may elect to determine credit exposure on the basis of such other method of determining credit exposure as may be permitted by the Financial Institution's primary federal regulatory authority.2. "Director" means the Director of the Department or his or her designee3. "Derivative transaction" shall include any transaction that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities, securities, currencies, interest or other rates, indices, or other assets.4. "Financial institution" means any entity, other than a credit union, duly organized under the laws of this state which has the statutory authority to accept money on deposit pursuant to title 19, including an entity which is prohibited from accepting deposits by its own by-laws or agreement to form; the term includes, but is not limited to banks, trust companies, savings banks, loan and investment banks and savings and loan associations. 230 R.I. Code R. 230-RICR-40-10-1.4