COLL 7.5.2 Borrowing not Available for Cover—QFC Retail Schemes

(1) Cash obtained from borrowing by or for a QFC retail scheme, and borrowing that the operator of a QFC retail scheme reasonably regards an eligible bank to be committed to provide, is not available for cover under rule 7.5.1 (Cover for transactions in derivatives and forward transactions—QFC retail schemes).

Note Borrowing and eligible bank are defined in the glossary.
(2) If a QFC retail scheme, or the independent entity of a QFC retail scheme acting for the scheme on the operator's instructions—
(a) borrows an amount of currency from an eligible bank; and
(b) keeps an amount in another currency, at least equal to that borrowing for the time being, on deposit with the eligible bank (or its agent or nominee);
this part applies as if the borrowed currency, and not the deposited currency, were part of the scheme property.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)