Common use of BORROWING AND LENDING Clause in Contracts

BORROWING AND LENDING. As a general rule the AIF shall not be permitted to employ leverage for investment purposes. In exceptional cases and whenever necessary in the best interests of the investors, however, the AIF may take out short-term loans up to a maximum of 20% of its most recent net asset value, in particular to cover short-term liquidity shortfalls and to meet pending redemption ap- plications. The limit must be observed when the loan is taken out and may subsequently in- crease during the loan's lifetime as a result of fluctuations in the value of the AIF's assets. If when determining the NAV it becomes evident that the maximum lending limit has been ex- ceeded as a result of fluctuations in the value of the AIF's assets, appropriate measures to reduce it shall be formulated. Responsibility for concluding loan agreements on behalf of the AIF shall rest with the AIFM. The final decision on whether to take out loans rests with the AIFM, with due consideration of the interests of the external Investment Manager, if any, the purpose of the borrowing, the way in which such loans are to be secured and the repayment modalities when they fall due. The assets of the AIF (e.g. holdings of physical gold) must not be pledged except by way of securing the borrowings permitted under Section 3.5.1.1, for transactions involving derivative financial instruments (where allowed) and for investments involving the mandatory contractual pledge of assets in favour of the contracting partner or a third party. 3.5.1.1 The AIF has no claim against the Depositary for provision of the maximum permissible loan amount. The decision as to whether, in what way and for what amount a loan may be granted by the Depositary to the AIF shall rest solely with the Depositary in accordance with its credit and risk policy. In certain circumstances this policy can change during the lifetime of the AIF. 3.5.1.2 The AIF itself shall not be entitled to grant loans of the kinds that are reserved by law for the banks. 3.5.1.3 The AIF shall not be entitled to act as guarantor for third parties.

BORROWING AND LENDING. 3.5.1.1 As a general rule the AIF shall not be permitted to employ leverage for investment purposes. In exceptional cases and whenever necessary in the best interests of the investors, however, the AIF may take out short-term loans up to a maximum of 20% of its most recent net asset value, in particular to cover short-term liquidity shortfalls and to meet pending redemption ap- plicationsapplications. The limit must be observed when the loan is taken out and may subsequently in- crease increase during the loan's lifetime as a result of fluctuations in the value of the AIF's assets. If when determining the NAV it becomes evident that the maximum lending limit has been ex- ceeded exceeded as a result of fluctuations in the value of the AIF's assets, appropriate measures to reduce it shall be formulated. Responsibility for concluding loan agreements on behalf of the AIF shall rest with the AIFM. The final decision on whether to take out loans rests with the AIFM, with due consideration of the interests of the external Investment Manager, if any, the purpose of the borrowing, the way in which such loans are to be secured and the repayment modalities when they fall due. The assets of the AIF (e.g. holdings of physical gold) must not be pledged except by way of securing the borrowings permitted under Section 3.5.1.1, for transactions involving derivative financial instruments (where allowed) and for investments involving the mandatory contractual pledge of assets in favour of the contracting partner or a third party. 3.5.1.1 3.5.1.2 The AIF has no claim against the Depositary for provision of the maximum permissible loan amount. The decision as to whether, in what way and for what amount a loan may be granted by the Depositary to the AIF shall rest solely with the Depositary in accordance with its credit and risk policy. In certain circumstances this policy can change during the lifetime of the AIF. 3.5.1.2 3.5.1.3 The AIF itself shall not be entitled to grant loans of the kinds that are reserved by law for the banks. 3.5.1.3 3.5.1.4 The AIF shall not be entitled to act as guarantor for third parties.

BORROWING AND LENDING. As a general rule the AIF shall not be permitted to employ leverage for investment purposes. In exceptional cases and whenever necessary in the best interests of the investors, however, the AIF may take out short-term loans up to a maximum of 20% of its most recent net asset value, in particular to cover short-term liquidity shortfalls and to meet pending redemption ap- plicationsapplications. The limit must be observed when the loan is taken out and may subsequently in- crease increase during the loan's lifetime as a result of fluctuations in the value of the AIF's assets. If when determining the NAV it becomes evident that the maximum lending limit has been ex- ceeded exceeded as a result of fluctuations in the value of the AIF's assets, appropriate measures to reduce it shall be formulated. Responsibility for concluding loan agreements on behalf of the AIF shall rest with the AIFM. The final decision on whether to take out loans rests with the AIFM, with due consideration of the interests of the external Investment Manager, if any, the purpose of the borrowing, the way in which such loans are to be secured and the repayment modalities when they fall due. The assets of the AIF (e.g. holdings of physical gold) must not be pledged except by way of securing the borrowings permitted under Section 3.5.1.1, for transactions involving derivative financial instruments (where allowed) and for investments involving the mandatory contractual pledge of assets in favour of the contracting partner or a third party. 3.5.1.1 3.6.1.1 The AIF has no claim against the Depositary for provision of the maximum permissible loan amount. The decision as to whether, in what way and for what amount a loan may be granted by the Depositary to the AIF shall rest solely with the Depositary in accordance with its credit and risk policy. In certain circumstances this policy can change during the lifetime of the AIF. 3.5.1.2 3.6.1.2 The AIF itself shall not be entitled to grant loans of the kinds that are reserved by law for the banks. 3.5.1.3 3.6.1.3 The AIF shall not be entitled to act as guarantor for third parties.