Banked points may be used to make reservations at any DVC resort or for any of the non-DVC options. MS doesn't care if the points used to make reservations are borrowed, banked or current year. Banked just means that the points expire at the end of the use year into which they were banked.
To rent banked points, the owner must make a reservation and rent that. Banked points may not be transferred to another member's account.