What happens to the assets backing the issuance of the MR$ currency?
As the underlying TIPS reach maturity, the U.S. Treasury will pay an amount of USD equal to the indexed value of the MR$ currency that is being secured. Upon receiving these USD, the sponsor then pays them over to the issuer; whereupon the issuer must do one of four things: (a) The issuer must purchase new inflation-indexed securities to replace the assets that have been paid off; if such assets are not available, then (b) the issuer may purchase other inflation-adjusted securities with an equivalent credit rating; if this is not possible, (c) the issuer must offer to repurchase an equivalent amount of MR$ currency at the indexed value on a first come first served basis; and if the holders of the MR$ currency are unwilling to accept the indexed value, then (d) the issuer must invest the funds in the most suitable investment available in an attempt to secure the purchasing power of the MR$ currency. If (d) should occur, then it may be impossible for the issuer and sponsor to meet the pr
