Version status: Applicable | Document consolidation status: Updated to reflect all known changes
Version date: 1 July 2011 - onwards
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Article 83

1. The following shall not borrow:

(a) an investment company;

(b) 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:

(a) 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

(b) 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.

Where a UCITS is authorised to borrow under points (a) and (b), such borrowing shall not exceed 15 % of its assets in total.

3. In order to ensure consistent harmonisation of this Article, ESMA may develop draft regulatory technical standards to specify the requirements of thi