The euronote issuance facility (NIF) provides an active market of short-term finance. Determine which of the following statements in relation to the NIF is incorrect.

1. The NIF can be used to obtain medium-term finance through a rollover arrangement.
2. Notes are sold in the market at a discount to the face value.
3. An NIF issue is sold through a tender process where the issuer is required to specify a posted rate at which it is prepared to sell the notes.
4. The clearing house often acts as the issuing and paying agent who is responsible for administering the facility on behalf of the issuer.