Neither banked nor borrowed points can be transferred. At any given time, you can transfer points from either your current use year or from the next one. The recipient can bank transferred points but not borrow them.
Got the info below from a very old thread - Points Transfer Rules 101 (link here)
Transfers can only occur during your current Use Year and your next Use Year. For example, with a Sep UY, today 6/7/05 you could transfer into or out of your 9/2004 or 9/2005 Use Years. In other words, you can transfer points that you haven't "received" yet. When you are working with future Use Year points, make sure to request that a Manual Transfer be done.
So, it seems to suggest that it can be done but you need to make sure you request a manual transfer if it is the next UY points you want to transfer. Also, as previously pointed out, the transferee would not be able to borrow those points.
The only way to borrow points is when actually making a reservation. If that reservation is later canceled, the points would be returned to your account - but they could no longer be returned to their original Use Year, banked or transferred.
As noted above, members may transfer "current" points from the present Use Year and "current" points from the next Use Year - so at this time if you have a June Use Year, you could transfer points from your 2013 Use Year into another member's 2013 Use Year and also transfer points from your June, 2014 Use Year into another member's 2014 Use Year.
MS has typically not been allowing a member to transfer points from a 2013 Use Year into another member's 2012 Use Year (ie - I could not transfer points from my June, 2013 Use Year into an October, 2012 Use Year), but it can't hurt to ask either as MS does occasionally make exceptions.