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Sell Buy Back Agreement Template for Switzerland

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Key Requirements PROMPT example:

Sell Buy Back Agreement

"I need a Swiss law-governed Sell Buy Back Agreement for a transaction between our bank and a pension fund, covering government bonds with a planned initial purchase date of March 15, 2025, and including standard margin maintenance provisions."

Document background
The Sell Buy Back Agreement is a crucial document in Swiss financial markets, used primarily for short-term financing and liquidity management purposes. It enables parties to engage in securities financing transactions while maintaining compliance with Swiss regulatory requirements. The agreement is particularly relevant when parties need to structure temporary transfers of securities with a predetermined repurchase commitment, often used for collateral management, yield enhancement, or short-term funding needs. This document type is subject to Swiss financial regulations, including FINMA oversight, and must align with both the Swiss Code of Obligations and financial market infrastructure laws. The agreement includes comprehensive provisions covering transaction mechanics, pricing methodologies, risk management, default scenarios, and Swiss-specific legal requirements for securities transfers.
Suggested Sections

1. Parties: Identification of the seller and buyer, including their full legal names, registration details, and addresses

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

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

4. Sale and Repurchase: Core transaction terms including initial sale and commitment to repurchase

5. Purchase Price and Repurchase Price: Specification of initial purchase price and repurchase price calculation methodology

6. Transfer of Title and Risk: Provisions regarding transfer of ownership and associated risks

7. Payment and Settlement: Terms for payment and settlement procedures for both sale and repurchase

8. Margin Maintenance: Provisions for maintaining agreed margin levels and margin calls

9. Income Payments: Treatment of income on purchased securities during the transaction period

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

11. Events of Default: Definition of events of default and their consequences

12. Close-out and Set-off: Provisions for early termination and netting arrangements

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

14. Notices: Communication procedures between parties

15. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction provisions

16. Miscellaneous: Standard boilerplate provisions including amendments, waivers, and severability

Optional Sections

1. Substitution: Optional provisions allowing substitution of purchased securities, used when parties want flexibility in collateral management

2. Agency Provisions: Required when one or both parties act as agents rather than principals

3. Electronic Trading Provisions: Include when transactions may be executed through electronic platforms

4. Force Majeure: Additional provisions for handling extraordinary events, particularly relevant for long-term arrangements

5. Additional Representations for Regulated Entities: Include when either party is a regulated financial institution

6. Data Protection: Required when personal data processing is involved in the transaction

7. Sanctions Compliance: Include when transactions might have international sanctions implications

Suggested Schedules

1. Schedule 1 - Form of Transaction Notice: Standard form for documenting individual transactions under the agreement

2. Schedule 2 - Eligible Securities: List and characteristics of securities eligible for sell-buyback transactions

3. Schedule 3 - Pricing Sources: Agreed sources and methodologies for pricing securities

4. Schedule 4 - Settlement Instructions: Standard settlement and payment instructions for both parties

5. Schedule 5 - Margin Percentages: Agreed margin ratios for different types of securities

6. Appendix A - Contact Details: List of authorized personnel and contact information for both parties

7. Appendix B - Forms of Notices: Standard forms for various notices under the agreement

8. Appendix C - Tax Documentation: Required tax forms and documentation

Authors

Alex Denne

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

Relevant legal definitions




















































Clauses


































Relevant Industries

Financial Services

Banking

Investment Management

Insurance

Securities Trading

Asset Management

Treasury Services

Capital Markets

Financial Technology

Professional Services

Relevant Teams

Legal

Treasury

Trading

Operations

Risk Management

Compliance

Securities Operations

Settlements

Portfolio Management

Collateral Management

Fixed Income

Securities Lending

Financial Control

Relevant Roles

Treasury Manager

Legal Counsel

Compliance Officer

Securities Operations Manager

Risk Manager

Trading Manager

Portfolio Manager

Financial Controller

Settlements Officer

Collateral Manager

Chief Investment Officer

Head of Fixed Income

Securities Lending Manager

Legal Director

Chief Financial 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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