N OTES TO F INANCIAL S TATEMENTS
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES ® , INC.
5. LOANS OF PORTFOLIO SECURITIES
The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions.
The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank,
or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value
of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105%
for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the
securities on loan. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when
required or may not return the securities when due.
As of February 29, 2008, the Fund had loaned securities which were collateralized by cash. The cash collateral received was
invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-
quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate)
and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of
The market value of the securities on loan as of February 29, 2008 and the value of the related collateral are disclosed in the
Statement of Assets and Liabilities. Securities lending income, as disclosed in the Fund’s Statement of Operations, represents
the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees
paid to BGI as securities lending agent.
6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT
In September 2006, FASB issued Sta