S.L. 370.32 Art. 22Reuse of assets held in custody.

(1) The assets held in custody by the depositary shall not be reused by the depositary, or by any third party to which its custody tasks have been delegated, for their own account except where:

(a) the reuse of the assets is executed for the account of the UCITS;

(b) the depositary is carrying the instructions of the UCITS management company on behalf of the UCITS;

(c) the reuse is for the benefit of the UCITS and in the interest of the unit holders;

(d) the transaction is covered by high-quality and liquid collateral received by the UCITS under a title transfer arrangement:

Provided that the use of the term "reuse" in this regulation shall comprise any transaction of assets held in custody including, but not limited to, transferring, pledging, selling and lending.

(2) The market value of the collateral shall, at all times, amount to at least the market value of the reused assets plus a premium.