Regulatory Alerts2016-09-02
Master Repurchase Agreement
The Bank of Sierra Leone establishes this Master Repurchase Agreement to govern bilateral transactions where a Seller transfers securities to a Buyer against funds, with a simultaneous obligation for the Buyer to repurchase them at a predetermined price and date. The framework mandates strict margin maintenance protocols, requiring parties to exchange additional securities upon margin deficits or excesses, while clarifying income entitlements, security interests, and asset segregation. It outlines comprehensive events of default and corresponding remedies, including accelerated repurchase obligations, cross-transaction netting rights, and replacement security purchases, all governed by Sierra Leonean law.
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