Repurchase Agreement Template for Saudi Arabia

This Repurchase Agreement template is designed for use in Saudi Arabian financial markets where institutions engage in secured financing transactions compliant with both secular and Islamic law. The document is particularly relevant for banks, financial institutions, and investment firms operating under the supervision of SAMA and the CMA. It provides a framework for short-term financing through the sale and repurchase of securities, incorporating necessary Sharia-compliant structures and local regulatory requirements. The agreement includes comprehensive provisions for transfer of title, margin maintenance, income distributions, and default scenarios, while ensuring alignment with Saudi Arabian banking regulations and Islamic finance principles. It is typically used for liquidity management, financing operations, and monetary policy implementation within the Kingdom's financial system.

1. Parties: Identification of the seller and buyer, including their full legal names, registration details, and authorized representatives

2. Background: Context of the agreement, including the parties' intention to enter into Sharia-compliant repo transactions

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including specific Islamic finance terminology

4. Sale and Repurchase: Core transaction terms including purchase price, repurchase price, and timing of transfers

5. Pricing and Payments: Detailed mechanisms for calculating prices, profit rates, and payment procedures

6. Transfer of Title: Provisions regarding ownership transfer and beneficial interests in the securities

7. Margin Maintenance: Requirements for maintaining collateral value and margin calls

8. Income Payments: Treatment of dividends, coupons, or other income on the securities during the repo period

9. Representations and Warranties: Standard and Sharia-specific representations from both parties

10. Events of Default: Circumstances constituting default and consequential rights and remedies

11. Termination: Provisions for early termination and close-out procedures

12. Governing Law and Jurisdiction: Application of Saudi law and specification of dispute resolution mechanisms