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Global Master Repurchase Agreement
"Need to draft a Global Master Repurchase Agreement for a transaction between our bank and a hedge fund client, with specific provisions for agency transactions and daily margin maintenance, to be executed by March 2025."
1. Parties: Identification of the contracting parties and their details
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Purchase and Repurchase: Core provisions governing the repo transactions
5. Margin Maintenance: Provisions for margin calls and transfers
6. Income Payments: Treatment of income on purchased securities
7. Payment and Transfer: Mechanics of payments and securities transfers
8. Events of Default: Default triggers and consequences
9. Tax Event: Provisions relating to tax implications and consequences
10. Notices and Other Communications: Methods and requirements for formal communications between parties
11. Governing Law and Jurisdiction: Choice of law and jurisdiction for dispute resolution
1. Buy/Sell Back Transactions: Additional provisions specifically governing buy/sell back transactions when parties intend to enter into such arrangements
2. Agency Transactions: Additional provisions for when one party acts as agent for third parties in repo transactions
3. Net Paying Securities: Special provisions for securities subject to withholding tax
4. Forward Transactions: Additional provisions for forward-starting repo transactions
1. Annex I - Supplemental Terms and Conditions: Contains additional terms and conditions specific to the parties' agreement
2. Annex II - Form of Confirmation: Standard template for transaction confirmations
3. Annex III - Buy/Sell Back Transactions: Supplemental terms for buy/sell back transactions
4. Annex IV - Agency Transactions: Supplemental terms for agency transactions
5. Annex V - Rate and Price Sources: Agreed sources for determining rates and prices
6. Annex VI - Forms of Notices: Standard templates for various notices under the agreement
7. Annex VII - Form of Power of Attorney: Standard form for powers of attorney if required
Authors
Additional Margin
Agency Transaction
Applicable Rate
Base Currency
Business Day
Buy/Sell Back Transaction
Buyer
Cash Margin
Confirmation
Contractual Currency
Default Market Value
Default Notice
Defaulting Party
Distribution
Equivalent Margin Securities
Equivalent Securities
Event of Default
Forward Transaction
Income
Margin Ratio
Margin Securities
Margin Transfer
Market Value
Net Exposure
Net Margin
Non-Defaulting Party
Notice of Default
Pricing Rate
Purchase Date
Purchase Price
Purchased Securities
Repurchase Date
Repurchase Price
Seller
Settlement Date
Spot Rate
Term
Transaction
Transaction Exposure
Transfer Date
Underlying Securities
Margin Maintenance
Income Payments
Payment and Transfer
Tax Event
Events of Default
Close-out and Set-off
Representations and Warranties
Notices
Force Majeure
Assignment and Transfer
Confidentiality
Termination
Governing Law
Jurisdiction
Set-off Rights
Interest Provisions
Market Value Calculations
Agency Provisions
Buy/Sell Back Terms
Confirmations
Netting
Default Remedies
Price Sources
Currency Provisions
Indemnification
Amendments
Securities Substitution
Recording
Waiver
Severability
Entire Agreement
Counterparts
Third Party Rights
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