Borrowing

(1) Without prejudice to section 199, the AIF capital management company may raise and hold loans for the joint account of investors only up to 30 percent of the market value of the properties belonging to the collective investment fund, and only where 1. this is provided for in the investment conditions, 2. the borrowing is compatible with proper business management, 3. the borrowing terms are in line with the market, and 4. the limit under section 260(3), point 3, is not exceeded. Borrowing to finance the redemption of units is permissible only in accordance with section 199.
(2) Loans raised by the real estate company must be taken into account, for the real estate collective investment fund, in proportion to the level of the participation, in calculating the limits named in subsection (1).