Repurchase Agreement
/rəˈpɜːrtʃəs əˈɡriːmənt/
Definitions
- (n.) A short-term secured loan agreement involving the sale of securities with a promise to repurchase them at a later date for a higher price.
The bank entered into a repurchase agreement to manage its liquidity needs.
Forms
- repurchase agreements
Related terms
Commentary
Often used in financial and securities law contexts, repurchase agreements function as short-term collateralized loans. Precision in drafting should clarify the securities involved, repurchase terms, and default remedies.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.