Bank Repurchase Agreement Template for Austria

The Bank Repurchase Agreement is a critical financial instrument used in the Austrian market for short-term secured lending between financial institutions. It enables parties to enter into transactions where securities are sold with a simultaneous commitment to repurchase equivalent securities at a future date for a specified price. This agreement, governed by Austrian law, incorporates requirements from the Austrian Banking Act (BWG), Securities Supervision Act (WAG 2018), and relevant EU regulations. It is particularly useful for liquidity management, securities financing, and collateralized borrowing operations. The document includes comprehensive provisions for margin maintenance, income payments, default scenarios, and close-out netting, while ensuring compliance with Austrian regulatory requirements and market practices.

1. Parties: Identification of the parties entering into the agreement

2. Background: Context of the agreement and brief description of the repo transaction structure

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Terms of the initial sale of securities from seller to buyer

5. Repurchase: Terms of the forward repurchase commitment

6. Income Payments: Treatment of income on purchased securities during the repo period

7. Margin Maintenance: Provisions for marking to market and margin transfers

8. Payment and Transfer: Mechanics of payments and securities transfers

9. Representations and Warranties: Standard and transaction-specific representations by both parties

10. Events of Default: Definition of default events and consequences

11. Close-out and Netting: Provisions for early termination and netting of obligations

12. Tax Provisions: Treatment of taxes and tax-related obligations

13. Notices: Communication requirements and contact details

14. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction provisions

15. General Provisions: Standard boilerplate clauses including amendments, assignments, etc.