Master Repurchase Agreement for the United States

Master Repurchase Agreement Template for United States

A Master Repurchase Agreement is a standardized contract governing the sale and subsequent repurchase of securities between parties. Used extensively in U.S. financial markets, it establishes the terms and conditions for repo transactions, including margin requirements, events of default, and rights of termination. The agreement complies with U.S. securities laws and regulations, incorporating provisions from the Securities Exchange Act and relevant Federal Reserve requirements.

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What is a Master Repurchase Agreement?

The Master Repurchase Agreement (MRA) serves as the foundation for repo transactions in U.S. financial markets. It's primarily used when parties engage in multiple repurchase transactions and need a standardized framework to govern their dealings. The agreement details crucial aspects such as pricing mechanisms, margin maintenance, default procedures, and risk allocation. Typically following the template developed by the Securities Industry and Financial Markets Association (SIFMA), it ensures compliance with U.S. regulatory requirements while providing flexibility for customization through schedules and annexes.

What sections should be included in a Master Repurchase Agreement?

1. Parties: Identification of buyer and seller, including legal status and contact details

2. Background: Purpose of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including 'Purchase Price', 'Repurchase Price', 'Margin', etc.

4. Purchase and Sale: Core mechanics of the repurchase transactions

5. Margin Maintenance: Requirements for maintaining margin and margin call procedures

6. Income Payments: Treatment of income on purchased securities

7. Events of Default: Circumstances constituting default and consequences

8. Governing Law: Applicable law and jurisdiction

What sections are optional to include in a Master Repurchase Agreement?

1. Buy-in: Procedures for buying in securities when dealing with securities that may need to be replaced

2. Agency Provisions: Terms for agency transactions when either party may act as agent

3. Tax Provisions: Special tax considerations for parties in different tax jurisdictions

What schedules should be included in a Master Repurchase Agreement?

1. Supplemental Terms and Conditions: Additional terms specific to the parties

2. Form of Confirmation: Template for transaction confirmations

3. Eligible Securities: List of securities acceptable for transactions

4. Margin Percentages: Agreed margin ratios for different security types

5. Agency Annex: Detailed provisions for agency transactions

6. Buy-in Procedures: Detailed procedures for buying in securities

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

Jurisdiction

United States

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Securities Exchange Act 1934: Primary federal law governing securities trading and establishing SEC. Key for repo agreements as it regulates securities transactions and market participants.

Securities Act 1933: Federal law requiring registration of securities and detailed disclosure requirements. Relevant for securities involved in repo transactions.

US Bankruptcy Code (Title 11 USC �� 559): Specific provisions regarding repo agreements in bankruptcy scenarios, including special protections for repo participants.

Federal Reserve Regulation T: Governs extension of credit by securities brokers and dealers, including margin requirements applicable to repo transactions.

Dodd-Frank Act: Post-2008 reform law affecting financial institutions, including reporting requirements and risk management for repo transactions.

FIRREA: Financial Institutions Reform, Recovery, and Enforcement Act - Affects financial institutions' participation in repo markets.

UCC Article 8: Uniform Commercial Code provisions governing investment securities, crucial for establishing rights and obligations in securities transfers.

UCC Article 9: Uniform Commercial Code provisions governing secured transactions, relevant for collateral aspects of repo agreements.

State Securities Laws: Also known as 'Blue Sky Laws' - State-specific securities regulations that may affect repo transactions within state jurisdictions.

Basel III Requirements: International banking standards affecting capital requirements and risk management for financial institutions engaging in repo transactions.

Anti-Money Laundering Regulations: Federal requirements for preventing money laundering, including transaction monitoring and reporting obligations.

KYC Requirements: Know Your Customer regulations requiring proper identification and verification of counterparties in financial transactions.

PATRIOT Act: Federal law including provisions for enhanced due diligence and monitoring of financial transactions to prevent terrorism financing.

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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