Overnight Reverse Repurchase Agreement Template for Austria

The Overnight Reverse Repurchase Agreement is a critical instrument in money market operations and liquidity management, used extensively by financial institutions operating under Austrian law. This agreement is specifically designed for transactions where one party agrees to purchase securities from another party with a commitment to sell them back the following business day at a predetermined price. The document incorporates essential elements required under Austrian financial regulations and EU directives, including detailed provisions for collateral management, pricing mechanisms, and default procedures. It is particularly relevant for entities seeking short-term funding or those managing their liquidity positions in the Austrian financial market, while ensuring compliance with both local and EU regulatory requirements.

1. Parties: Identification of the buyer and seller, including their registered addresses and registration details

2. Background: Brief context explaining the nature of the reverse repo transaction and the parties' intentions

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Purchase and Repurchase Obligations: Core transaction obligations including purchase price, repurchase price, and pricing rate calculations

5. Income Payments: Treatment of income received on purchased securities during the transaction period

6. Margin Maintenance: Provisions for calculating and maintaining margin requirements

7. Payment and Transfer: Mechanics and timing of payments and securities transfers

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

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

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

11. Communications: Methods and requirements for notices and other communications

12. Governing Law and Jurisdiction: Austrian law as governing law and jurisdiction provisions

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, and entire agreement