Reverse Purchase Agreement for United Arab Emirates

Reverse Purchase Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for a reverse purchase transaction, where one party sells an asset to another party with a commitment to repurchase it at a predetermined future date and price. The document incorporates UAE Civil and Commercial Code requirements, ensures Sharia compliance where necessary, and includes specific provisions for asset transfer, pricing mechanisms, and risk allocation. It addresses both the initial sale and subsequent repurchase obligations, while ensuring compliance with UAE regulatory requirements and banking regulations where applicable.

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What is a Reverse Purchase Agreement?

The Reverse Purchase Agreement is a sophisticated financial instrument used in the UAE market for structured financing arrangements, particularly in situations where traditional lending structures may not be suitable or when Sharia compliance is required. This document type is commonly used in the UAE financial sector for liquidity management, asset financing, and as an alternative to conventional lending arrangements. The agreement details the sale of assets with a commitment to repurchase, incorporating specific UAE legal requirements, including provisions from the UAE Civil Code and Commercial Code. It is particularly relevant for financial institutions, corporate entities, and investment companies operating in the UAE market, requiring careful consideration of local regulatory requirements and optional Sharia compliance elements. The document includes comprehensive provisions for asset transfer, pricing, risk allocation, and default scenarios, all structured within the UAE legal framework.

What sections should be included in a Reverse Purchase Agreement?

1. Parties: Identification of all parties to the agreement with full legal names and addresses

2. Background: Context of the agreement and brief description of the reverse purchase arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including financial and technical terms

4. Sale and Purchase: Core provisions detailing the initial sale and subsequent repurchase obligations

5. Purchase Price and Payment Terms: Detailed pricing mechanism, payment schedule, and currency provisions

6. Delivery and Transfer: Terms governing the delivery and transfer of assets in both initial sale and repurchase

7. Representations and Warranties: Standard and specific warranties regarding asset ownership, condition, and authority to enter agreement

8. Covenants: Ongoing obligations of parties during the agreement term

9. Events of Default: Circumstances constituting default and consequences

10. Termination: Conditions and process for early termination

11. Governing Law and Jurisdiction: Specification of UAE law governance and jurisdiction for disputes

12. Notices: Communication procedures between parties

13. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability

What sections are optional to include in a Reverse Purchase Agreement?

1. Sharia Compliance: Specific provisions ensuring compliance with Islamic law principles - required if either party requires Sharia compliance

2. Security Arrangements: Additional security or collateral provisions - needed if additional security is required

3. Tax Provisions: Specific tax treatment and obligations - required if cross-border elements exist

4. Regulatory Compliance: Additional regulatory requirements - needed if transaction involves regulated entities

5. Force Majeure: Provisions for unforeseen circumstances - optional but recommended

6. Confidentiality: Detailed confidentiality obligations - required for sensitive transactions

7. Assignment and Transfer: Rights to assign or transfer obligations - needed if transfers are contemplated

What schedules should be included in a Reverse Purchase Agreement?

1. Asset Schedule: Detailed description of assets subject to the reverse purchase arrangement

2. Pricing Schedule: Detailed pricing calculations and mechanisms

3. Form of Transfer Documents: Templates for asset transfer documentation

4. Condition Precedent Documents: List of required documents and conditions to be satisfied

5. Notice Forms: Standard forms for various notices under the agreement

6. Compliance Certificates: Templates for periodic compliance certification

7. Security Documents: Forms of any security documents if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Finance

Islamic Finance

Real Estate

Manufacturing

Trading & Commerce

Infrastructure

Energy

Commodities

Asset Management

Construction

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Islamic Banking

Corporate Finance

Investment

Operations

Asset Management

Commercial Operations

Documentation

Relevant Roles

Chief Financial Officer

Legal Counsel

Finance Director

Treasury Manager

Investment Manager

Compliance Officer

Risk Manager

Corporate Finance Manager

Islamic Finance Specialist

Asset Manager

Commercial Director

Transaction Manager

Senior Legal Advisor

Banking Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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