A unique type of borrowing used in the domestic market and unique to the German market where the loans are traded in the form of a promissory letter setting out the terms and conditions of the debt. Although by convention treated by investors as securities, Schuldscheine are legally loans and are treated as such by accounting conventions. The primary market involves banks making loans to companies, institutions, the state and central governments, and receiving a certificate which can then be traded in the active secondary market (cf. sub-participation). Interest is paid annually on a 30/360-day year basis.