Article 4 of Delegated Regulation (EU) No 1152/2014 provides three possible methods for determining the geographical location of securitisation exposures.
Article 4(1) refers to “the location of the obligor of the underlying exposures”  usind “location" and "obligor” in the singular, which may give rise to different interpretations when underlying exposures are diversified across several countries.

Two possible readings emerge:

Option A — Article 4(1) applies only when all underlying obligors are located in a single country

Under this interpretation, the use of the singular (“obligor”, “location”) implies that Article 4(1) is intended only for securitisations where the entire underlying pool is located in one jurisdiction.
If the underlying exposures span more than one country, Article 4(1) would no longer apply. Instead, Article 4(2) would automatically govern such cases, meaning the securitisation exposure would be assigned to the single country with the largest share of the underlying exposures.

Option B — Article 4(1) establishes a look‑through approach across all underlying obligors and jurisdictions

Under this interpretation, Article 4(1) is understood as the primary look‑through rule, requiring institutions to attribute securitisation exposures proportionally to each jurisdiction represented in the underlying pool.
Here, the singular terminology would be interpreted as generic, not restrictive. In this view, Article 4(1) applies regardless of the number of countries represented among the underlying obligors.

Article 4(2) would then be considered an optional simplification, allowing institutions—if they choose—to assign the securitisation exposure entirely to the country with the largest share of underlying exposures.

Under both options, Article 4(3) would act as a fallback, only applicable to cases where information on underlying exposures is insufficient to determine the geographical location according to paragraphs (1) and (2).