The Uniad de Fomento (UF) is a Unit of account that is used in Chile. The exchange rate between the UF and the Chilean peso is constantly adjusted to inflation so that the value of the Unidad de Fomento remains constant. It was created on January 20, 1967, for the use in determining principal and interest in international secured loans for development, subject to revaluation according to the variations of inflation. Afterwards it was extended to all types of bank loans, private or special financing, purchases or investments on installments, contracts, and some special situations. Also it is used in legal standards such as the par value of stock/capitalization of companies, fines, etc. It has become the preferred and predominant measure for determining the cost of construction, values of housing and any secured loan, either private or of the Chilean government. Individual payments are made in Chilean pesos (the country's legal tender), according to the daily value of the UF.