Overnight Reverse Repurchase Agreement Template for Malaysia

This Overnight Reverse Repurchase Agreement is designed for use in Malaysia's sophisticated financial markets, where it serves as a crucial instrument for short-term liquidity management and secured lending. The document is structured to comply with Malaysian regulatory requirements, including Bank Negara Malaysia's guidelines and relevant securities laws. It provides a comprehensive framework for executing overnight repo transactions, detailing the sale and repurchase of securities, pricing mechanisms, risk management provisions, and settlement procedures. The agreement accommodates both conventional and Islamic finance principles, reflecting Malaysia's dual banking system, and includes specific provisions for collateral management and default scenarios.

1. Parties: Identification of the buyer and seller, including their regulatory status and principal business addresses

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

3. Definitions: Key terms used throughout the agreement, including financial and technical terms specific to repo transactions

4. Purchase and Sale: Core transaction mechanics, including initial sale and repurchase obligations

5. Pricing and Payment Terms: Purchase price, repurchase price, pricing rate calculations, and payment mechanisms

6. Settlement and Delivery: Procedures for securities transfer and payment settlement

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

8. Margin Maintenance: Requirements for margin calls and margin transfers

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

10. Close-out and Set-off: Procedures for early termination and calculation of amounts due

11. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction provisions