A medium- to long-term finance instrument that allows the borrower, by issuing short-term paper, to benefit from cheaper short-term funds. An RUF consists of the following: - Euronotes; - the borrower issues short-term paper for periods of less than one year through different mechanisms (CDs, in the case of banks); - underwriting banks’ contingent liability (backup line); - a group of underwriting banks, whose obligation consists of purchasing any of the above-mentioned unsold short-term notes at previously arranged rates or, alternatively, who provide funds through separate lending arrangements that offer the issuer the certainty that the requested amount will be available. The instruments that RUFs most closely resemble are floating-rate notes and syndicated loans. An RUF, however, includes the special feature of staggered maturities.