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.