This section presents the method of calculating the UL capital requirements for purchased receivables. For such assets, there are IRB capital charges for both default risk and dilution risk. The first sub-section discusses the calculation of risk-weighted assets for default risk. The calculation of risk-weighted assets for dilution risk is provided in the second sub-section. The method of calculating expected losses, and for determining the difference between that measure and provisions, is described in section CA-5.7.