Rider A is designed to be incorporated in the Schedule to a 1992 or 2002 ISDA Master Agreement. The Rider facilitates the documentation of one or more Transactions which are intended to be used as cover assets for covered bonds or mortgage bonds pursuant to the German Covered Bonds Act.

Rider B is designed to be incorporated in the Schedule to a 1992 or 2002 ISDA Master Agreement. The Rider facilitates the documentation of one or more Transactions which are intended to be used as cover assets for covered bonds or mortgage bonds pursuant to the German Covered Bonds Act.

It should be noted that there are two German Riders and they differ in structure rather than content. Rider A uses the concept of concluding an additional, separate master agreement between the parties for those derivatives transactions which are to be entered in a specific Cover Register (and other transactions between the same parties would need to be covered by a separate master agreement). Rider B allows a further separate and independent master agreement to be created by inserting the relevant description (Rider B text) in the Schedule (or an additional supplement/annex) to an already existing master agreement which has been previously entered in (for less limited purposes).

The Explanatory Note sets forth background information for each provision in the Rider A and Rider B. This guidance is not intended to be legal advice, but rather to offer explanations to the particular drafting approach utilized in the Riders.