1.Neither: -an investment company, nor -a management company or depositary acting on behalf of a unit trust, may borrow. However, a UCTIS may acquire foreign currency by means of a 'back-to-back' loan.
2.By way of derogation from paragraph 1, a Member State may authorize a UCITS to borrow: (a)up to 10 % -of its assets, in the case of an investment company, or -of the value of the fund, in the case of a unit trust, provided that the borrowing is on a temporary basis; (b)up to 10 % of its assets, in the case of an investment company, provided that the borrowing is to make possible the acquisition of immovable property essential for the direct pursuit of its business; in this case the borrowing and that referred to in subparagraph (a) may not in any case in total exceed 15 % of the borrower's assets.