COLL 12.6.11 Depositing cash with, and borrowing money from, affected persons—REITs

(1) The operator of a REIT must not deposit, with an affected person, cash that is part of the REIT's assets unless:
(a) the affected person is a regulated financial institution licensed to accept deposits; and
(b) the rate of interest that is to be paid on the deposit is not lower than the prevailing commercial rate for a deposit of that size and term.
(2) The operator of a REIT must not borrow money from an affected person unless:
(a) the affected person is a regulated financial institution licensed to lend money; and
(b) the rate of interest to be charged on the borrowing is not higher than the prevailing commercial rate for a borrowing of that size and term.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)