Master Repurchase Agreement Example

If you`re looking for an example of a master repurchase agreement (MRA), you`ve come to the right place. An MRA is a legal document that governs the repurchase, or “repo,” transactions between two parties, typically a bank and a dealer. The MRA lays out the terms and conditions of the repo agreement and provides a framework for the parties to conduct these transactions.

Here is an example of a master repurchase agreement:

This Master Repurchase Agreement (the “Agreement”) is entered into on [date] by and between [Bank], a [state] corporation, having its principal place of business at [address], and [Dealer], a [state] corporation, having its principal place of business at [address].

1. Purpose and Scope: The purpose of this Agreement is to establish the terms and conditions under which Bank shall purchase from Dealer and Dealer shall sell to Bank, on a repurchase basis, certain securities identified in Exhibit A hereto. This Agreement sets forth the general terms and conditions applicable to all transactions entered into pursuant to this Agreement.

2. Purchase of Securities: Bank agrees to purchase from Dealer, and Dealer agrees to sell to Bank, on a repurchase basis, the securities described in Exhibit A hereto (the “Securities”). The purchase price for the Securities shall be equal to the “Market Value” (as defined below) of the Securities on the date of the repo transaction.

3. Delivery of Securities: Dealer shall deliver the Securities to Bank on the date of the repo transaction in accordance with the terms of this Agreement. The Securities shall be delivered free and clear of all liens and encumbrances.

4. Repurchase of Securities: Dealer shall have the right and obligation to repurchase the Securities from Bank on the “Repurchase Date” (as defined below) at a repurchase price equal to the repurchase price specified in Exhibit A hereto. Bank shall have no obligation to repurchase the Securities from Dealer on any date other than the Repurchase Date.

5. Fees: Dealer shall pay Bank a fee for each repo transaction entered into pursuant to this Agreement. The fee shall be calculated based on the repurchase price of the Securities and the term of the repo transaction.

6. Representations and Warranties: Each party represents and warrants to the other that it has full power and authority to enter into and perform its obligations under this Agreement, and that the execution and delivery of this Agreement will not violate any law, regulation, or court order applicable to such party.

7. Indemnification: Each party shall indemnify and hold harmless the other party and its officers, directors, employees, and agents from and against any and all claims, damages, liabilities, losses, costs, and expenses (including attorneys` fees) arising out of or in connection with any breach of this Agreement by such party.

8. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [state], without regard to its conflict of laws provisions.

9. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

This is just one example of a master repurchase agreement. The specific terms and conditions of an MRA may vary depending on the parties involved and the nature of the repo transactions. It is important to consult with legal and financial experts to ensure that your MRA meets your specific needs and objectives.