In this paper we study a class of operator functions that are holomorphic in the domain $\mathbb C\setminus{(-\infty,-1]\cup [1,+\infty)}$ and whose values are contractive operators in a Hilbert space . The functions in $\mathcal R\mathcal S(\mathfrak M)\mathbb D\mathbb C_+\cup\mathbb C_-$. Such functions can be realized as transfer functions of minimal passive selfadjoint discrete-time systems. We give various characterizations for the class and obtain an explicit form for the inner functions from the class as well as an inner dilation for any function from . We also consider various transformations of the class $\mathcal R\mathcal S(\mathfrak M)$, construct realizations of their images, and find corresponding fixed points.

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