A revolving underwriting facility is a medium-term revolving commitment to guarantee the overseas sale of short-term negotiable promissory notes (usually a fixed spread over LIBOR) issued by the borrower at or below a predetermined interest rate. RUFs separate the roles of the medium-term risk takers from the funding (the short-term investors). A RUF is different from a NIF in that it separates the functions of underwriting and distribution. Another form of RUF is a Transferable Revolving Underwriting Facility (TRUF). With this arrangement the underwriter is able, with the borrower’s approval, to transfer all rights and obligations under the underwriting commitment to another institution at any time during the life of the facility. (Federal Reserve-Bank Holding Company Supervision Manual)