1. The following shall not borrow:
an investment company;
a management company or depositary acting on behalf of a common fund.
A UCITS may, however, acquire foreign currency by means of a ‘back-to-back’ loan.
2. By way of derogation from paragraph 1, a Member State may authorise a UCITS to borrow provided that such borrowing is:
on a temporary basis and represents:—in the case of an investment company, no more than 10 % of its assets, or—in the case of a common fund, no more than 10 % of the value of the fund; or
to enable the acquisition of immovable property essential for the direct pursuit of its business and represents, in the case of an investment company, no more than 10 % of its assets.
— | in the case of an investment company, no more than 10 % of its assets, or |
— | in the case of a common fund, no more than 10 % of the value of the fund; or |
Where a UCITS is authorised to borrow under points (a) and (b), such borrowing shall not exceed 15 % of its assets in total.