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Master Repurchase Agreement for United Arab Emirates

Master Repurchase Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the framework for conducting repurchase transactions between financial institutions. The document incorporates UAE federal regulations, Central Bank requirements, and market practices while defining the terms and conditions for the sale and repurchase of securities. It addresses crucial aspects including transfer of title, margin maintenance, default mechanisms, and remedies, while ensuring compliance with both conventional and Islamic banking principles where applicable. The agreement includes specific provisions tailored to UAE market conditions and regulatory requirements.

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What is a Master Repurchase Agreement?

The Master Repurchase Agreement serves as the primary contractual framework for institutions engaging in repurchase transactions within the UAE financial markets. This document is essential when parties intend to enter into multiple repurchase transactions without negotiating separate terms for each deal. It includes comprehensive provisions covering transaction initiation, pricing, margin maintenance, default scenarios, and remedies, all aligned with UAE federal laws and Central Bank regulations. The agreement is designed to accommodate both conventional and Islamic finance structures, making it versatile for various financial institutions operating in the UAE's dual banking system. Special attention is given to local regulatory requirements, including those of the Securities and Commodities Authority and the Central Bank of UAE.

What sections should be included in a Master Repurchase Agreement?

1. Parties: Identification of the contracting parties, including their legal status and registered addresses

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

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Initiation and Confirmation: Procedures for initiating transactions and confirming their terms

5. Transfer of Title and Securities: Provisions governing the transfer of securities and establishment of ownership rights

6. Pricing and Payments: Calculation of purchase price, repurchase price, price differential, and payment mechanisms

7. Margin Maintenance: Requirements and procedures for maintaining margin, including margin calls and transfers

8. Income Payments: Treatment of income received on purchased securities during the transaction

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

10. Remedies and Set-off Rights: Available remedies upon default and rights of set-off

11. Tax Provisions: Treatment of taxes and tax-related obligations

12. Representations and Warranties: Standard and transaction-specific representations and warranties

13. Covenants: Ongoing obligations of the parties

14. Term and Termination: Duration of agreement and termination provisions

15. Notices: Communication procedures and contact details

16. Governing Law and Jurisdiction: Choice of UAE law and jurisdiction provisions

17. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability

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

1. Islamic Finance Compliance: Required when the agreement needs to comply with Sharia principles, including specific structures and terminology

2. Agency Provisions: Used when any party acts as agent for undisclosed principals

3. Currency Provisions: Required for cross-border transactions involving multiple currencies

4. Electronic Trading Provisions: Needed when transactions will be executed through electronic trading platforms

5. Buy/Sell Back Provisions: Alternative structure for repo transactions, used in specific market circumstances

6. Third Party Rights: Required when rights are to be conferred on non-parties to the agreement

7. Central Counterparty Provisions: Needed when transactions will be cleared through a central counterparty

What schedules should be included in a Master Repurchase Agreement?

1. Form of Confirmation: Standard template for transaction confirmations

2. Eligible Securities: List and characteristics of securities eligible for repo transactions

3. Margin Percentages: Specified margin ratios for different types of securities

4. Forms of Notices: Standard forms for various notices under the agreement

5. Agency Terms: Detailed terms applicable to agency relationships

6. Currencies and Payment Instructions: Specified currencies and payment details for settlements

7. Contact Details: List of authorized personnel and contact information

8. Market Practices: Specific UAE market practices and requirements

9. Electronic Trading Terms: Terms specific to electronic trading platforms if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions


















































Clauses



































Relevant Industries

Banking

Financial Services

Investment Management

Securities Trading

Asset Management

Insurance

Government Finance

Islamic Banking

Capital Markets

Treasury Services

Relevant Teams

Legal

Treasury

Compliance

Risk Management

Securities Trading

Financial Control

Operations

Investment Management

Islamic Banking

Documentation

Regulatory Affairs

Trading Operations

Settlement

Relevant Roles

Legal Counsel

Treasury Manager

Compliance Officer

Risk Manager

Securities Trading Manager

Financial Controller

Chief Financial Officer

Head of Operations

Investment Manager

Islamic Finance Specialist

Documentation Specialist

Regulatory Affairs Manager

Trading Operations Manager

Settlement Officer

Industries









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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