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Sell Buy Back Agreement for Nigeria

Sell Buy Back Agreement Template for Nigeria

A comprehensive agreement governed by Nigerian law that structures a transaction where one party sells securities or assets to another party with a simultaneous commitment to repurchase them at a later date for a predetermined price. The document details the terms of both the initial sale and the subsequent repurchase, including pricing mechanisms, delivery requirements, and risk allocation. It incorporates relevant Nigerian regulatory requirements, particularly those under the Investments and Securities Act 2007 and Central Bank of Nigeria regulations, while addressing key aspects such as title transfer, margin maintenance, and default procedures.

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What is a Sell Buy Back Agreement?

The Sell Buy Back Agreement is a crucial financial instrument in the Nigerian market, commonly used by financial institutions, corporate entities, and investment firms for liquidity management and short-term financing needs. It provides a structured framework for transactions where securities are sold with a concurrent obligation to repurchase them at a predetermined future date and price. This document type is essential in the Nigerian financial sector, being subject to oversight by the Securities and Exchange Commission and the Central Bank of Nigeria. The agreement typically includes detailed provisions for initial sale, repurchase obligations, pricing mechanisms, risk management, and regulatory compliance. It's particularly relevant in contexts where parties need to maintain regulatory capital requirements, manage short-term cash positions, or facilitate secured lending arrangements while ensuring compliance with Nigerian financial regulations and market practices.

What sections should be included in a Sell Buy Back Agreement?

1. Parties: Identification of seller and buyer with full legal names and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Terms of initial sale including price, delivery, and transfer of title

5. Repurchase Obligations: Terms of the buyback including repurchase price and timing

6. Payment Terms: Details of payment mechanisms, currency, and payment instructions

7. Delivery and Settlement: Procedures for delivery of securities/assets and settlement process

8. Representations and Warranties: Standard representations about capacity, authority, and asset ownership

9. Events of Default: Circumstances constituting default and consequences

10. Termination: Grounds for termination and processes

11. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction details

12. Notices: Process and addresses for formal communications

13. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability

What sections are optional to include in a Sell Buy Back Agreement?

1. Income Payments and Corporate Actions: Required if the securities generate income during the buyback period

2. Substitution: Include if parties want the ability to substitute securities

3. Margin Maintenance: Include for transactions requiring ongoing margin calculations

4. Tax Provisions: Detailed section needed if cross-border elements or specific tax arrangements apply

5. Foreign Exchange Provisions: Required if transaction involves multiple currencies

6. Broker/Agent Provisions: Include if transaction involves intermediaries

7. Force Majeure: Optional expanded clause for market disruption events

8. Electronic Trading and Settlement: Include if using electronic trading platforms

What schedules should be included in a Sell Buy Back Agreement?

1. Schedule 1 - Asset Description: Detailed description of securities or assets subject to the agreement

2. Schedule 2 - Pricing and Valuation: Methodology for calculating purchase and repurchase prices

3. Schedule 3 - Form of Transaction Notice: Standard form for confirming individual transactions

4. Schedule 4 - Settlement Instructions: Detailed payment and settlement procedures

5. Schedule 5 - Required Documents: List of documents required for completion of transaction

6. Appendix A - Confirmation Form: Standard form for transaction confirmations

7. Appendix B - Power of Attorney: If required for execution of transfers

8. Appendix C - Eligible Securities: List of acceptable securities for substitution 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

Jurisdiction

Nigeria

Publisher

Ƶ

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions













































Clauses


































Relevant Industries

Banking

Financial Services

Investment Management

Securities Trading

Asset Management

Corporate Finance

Insurance

Pension Funds

Capital Markets

Treasury Services

Relevant Teams

Legal

Treasury

Trading

Risk Management

Compliance

Operations

Finance

Investment

Securities Operations

Portfolio Management

Transaction Management

Documentation

Credit Risk

Market Risk

Relevant Roles

Treasury Manager

Investment Officer

Securities Trader

Legal Counsel

Risk Manager

Compliance Officer

Portfolio Manager

Financial Controller

Trading Operations Manager

Securities Operations Officer

Chief Investment Officer

Head of Trading

Legal Director

Chief Financial Officer

Investment Analyst

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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