Art. 77

(Art. 55 para. 1 let. c and d and para. 2 CISA)

1. At the expense of a securities fund:
   1. no loans may be granted, nor may any guarantees be concluded;
   2. no more than 25 per cent of the fund's net assets may be pledged or owner- ship thereof be transferred as collateral.
2. Securities funds may borrow the equivalent of up to 10 per cent of the net assets on a temporary basis.
3. Securities lending and repurchase agreements in the form of reverse repos are not deemed to be lending pursuant to paragraph 1a .
4. Repurchase agreements in the form of repos pursuant to paragraph 2 are deemed to be borrowing unless the funds obtained are used as part of an arbitrage transaction for the acquisition of securities of a similar type in connection with a reverse repo.¹