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Article contents
Remarks by Ronald Brand
Published online by Cambridge University Press: 28 February 2017
Abstract
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- Type
- Internationalization of the Securities Markets
- Information
- Copyright
- Copyright © American Society of International Law 1988
References
1 27 ILM 524 (1988).
2 [1982] PROC. AM. SOC. INT’L L. 353.
3 NIFs and RUFs are transactions in which a bank that is acting as a sales agent for a corporate issuer’s notes (NIF = Note Issuance Facility; RU = Revolving Underwriting Facility) promises the issuer that if the notes do not sell as anticipated, the bank will make a loan to the issuer in the amount of the unplaced notes. The financial statements of the bank do not reflect this promise, since it is a contingent one, but the bank is incurring a risk that it will be making a loan to a corporation at the very moment that the market has decided it does not wish to hold the corporation’s obligations. Hence a system of capital adequacy requirements that takes risk into account will require capital to be held against the bank’s contingent obligation under the Note Issuance Facility.
4 S. 1986, 100th Cong., 2d Sess. (1987), 134 Cong. Rec. S3437 (March 30, 1988).
5 S. Rep. 305, 100th Cong., 2nd Sess. (1987), to accompany S. 1886, at p. 73.
6 19 SEC. REG. & L. REP. 1303 (8/21/87).