RBS 2008 Annual Report Download - page 249

29 Leases (continued)
Residual value exposures
The tables below give details of the unguaranteed residual values included in the carrying value of finance lease receivables (see page 209) and
operating lease assets (see page 223).
Year in which residual value will be recovered
After 1 year After 2 years
Within 1 but within but within After 5
year 2 years 5 years years Total
2008 £m £m £m £m £m
Operating leases
Transportation 794 130 1,701 2,103 4,728
Cars and light commercial vehicles 577 195 182 8 962
Other 112 35 48 8 203
Finance leases 24 29 99 341 493
1,507 389 2,030 2,460 6,386
2007
Operating leases
Transportation 485 253 1,762 2,505 5,005
Cars and light commercial vehicles 331 467 118 — 916
Other 26 47 64 18 155
Finance leases 23 29 115 288 455
865 796 2,059 2,811 6,531
The Group provides asset finance to its customers through acting as a lessor. It purchases plant, equipment and intellectual property, renting them to
customers under lease arrangements that, depending on their terms, qualify as either operating or finance leases.
RBS Group Annual Report and Accounts 2008248
Notes on the accounts continued
30 Collateral and securitisations
Securities repurchase agreements and lending transactions
The Group enters into securities repurchase agreements and securities
lending transactions under which it receives or transfers collateral in
accordance with normal market practice. Generally, the agreements
require additional collateral to be provided if the value of the securities
falls below a predetermined level.
Under standard terms for repurchase transactions in the UK and US
markets, the recipient of collateral has an unrestricted right to sell or
repledge it, subject to returning equivalent securities on settlement of
the transaction.
The fair value (and carrying value) of securities transferred under
repurchase transactions included within debt securities on the balance
sheet were £80,576 million (2007 – £107,651 million). All of these
securities could be sold or repledged by the holder. Securities received
as collateral under reverse repurchase agreements amounted to £89.3
billion (2007 – £373.7 billion), of which £49.0 billion (2007 – £337.8
billion) had been resold or repledged as collateral for the Group’s own
transactions.