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Definition: Note Issuance Facility

SNA 1993

Underwritten Note Issuance Facilities (NIFs) provide a guarantee that a potential debtor will be able to sell short-term securities (notes) that he issues and that the bank or banks issuing the facility will take up any notes not sold in the market or will provide equivalent advances; the facility itself is contingent, and the creation of the facility gives rise to no entry in the financial account; only if the underwriting institution is requested to make funds available will it acquire an actual asset, which is recorded in the financial account.
United Nations, "System of National Accounts (SNA) 1993", § 11.25, United Nations, New York, 1993