# Note issuance facility

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{{Short description|Underwriting agreement in the Euro-currency market}}
{{More citations needed|date=November 2021}}
'''Note issuance facility''' ('''NIF''') is an [underwriting](/source/underwriting) agreement/arrangement in the [Eurocurrency](/source/Eurocurrency) market under which borrowers place short/medium term (one to six months) notes via a [syndicate](/source/syndicate) of prime/[commercial bank](/source/commercial_bank)s, and the borrowers' issue is backed by the commitment of the syndicate banks to purchase any paper which the borrowers may be unable to sell.<ref>OECD – Glossary http://stats.oecd.org/glossary/detail.asp?ID=1850</ref><ref>Reserve Bank of India http://rbidocs.rbi.org.in/rdocs/content/pdfs/87359.pdf</ref> Since the facility/guarantee itself is contingent, the creation of NIF does not give rise to an entry in the [financial account](/source/financial_account) and will be treated as an off-[balance sheet](/source/balance_sheet) item in the guarantor books. When the underwriting institution is requested to make funds available, it will acquire the actual asset (notes) and will be recorded in the financial account.{{citation needed|date=November 2021}}

== References ==
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Category:Legal documents
Category:Negotiable instrument law
Category:Securities (finance)
Category:Interest-bearing instruments

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