Pursuant to Sec. 1, Para. 1, Sentence 2, № 7 of the German Banking Act, the entering into of an obligation to repurchase previously sold loan receivables before maturity. – The purpose of these transactions is to bring together borrowers who require loans with longer maturities and lenders who wish to invest money for shorter periods at a fixed interest rate in such a way that the funds for longer-term lending are raised through several short-duration, interdependent (revolving) loans granted by different lenders. The German Federal Financial Supervisory Authority has issued an explanatory leaflet on revolving business. – See Darlehn.
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