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	Repurchase agreement - Wikipedia, the free encyclopedia
		Of course, a repo is essentially collateralized borrowing; however, it is theoretically (and practically!) possible that the borrower of cash may fail to repurchase the securities sold at the promised date of repurchase (for instance, the borrower of cash may have defaulted by the repurchase time).
		Under a repurchase agreement ("RP" or "repo"), the Federal Reserve (Fed) buys US Treasury securities from a dealer who agrees to buy them back, typically within one to seven days; a reverse repo is the opposite.
		Repurchase agreements initially add reserves to the banking system and then withdraw them; reverse repos initially drain reserves and later add them back.
	en.wikipedia.org /wiki/Repurchase_agreements (680 words)

	1998-032 \| 6/12/1998 \| Kansas Attorney General Opinion
		A repurchase agreement is a transaction between the State as buyer/lender and a qualified securities dealer as seller/borrower: the State transfers cash to the securities dealer; the dealer transfers securities to the State and agrees to repay the State's cash, plus interest, in exchange for return or "re-purchase" of the same securities.
		Repurchase agreements are likewise an authorized municipal investment, but the 1992 Legislature added the supplementary requirement to K.S.A. 12-1675 that all securities transactions occur on a "delivery vs. payment" basis (similar to K.A.R. 122-3-7) and K.S.A. 12-1675(e)(2) designates the potential custodians.
		A tri-party repurchase agreement in which the independent custodial bank acts as agent to both parties and the State is a party to the tri-party agreement is classified in the lowest risk category.
	www.kscourts.org /ksag/opinions/1998/1998-032.htm (1664 words)

	NCUA IRPS 85-2 -- Repurchase Agreements of Depository Institutions with Securities Dealers and Others 11/85
		A repurchase agreement is one in which a party that owns securities acquires funds by transferring the securities to another party under an agreement to repurchase the securities at an agreed upon future date.
		Repurchase agreement counterparty limitations should include the overall permissible dollar positions in repurchase agreements, maximum repurchase agreement maturities and limits on temporary exposure that may result from decreases in collateral values or delays in receiving collateral.
		Repurchase agreements should provide for additional securities or cash to be placed with the depository institution or its custodian bank to maintain the margin within the predetermined level.
	www.ncua.gov /RegulationsOpinionsLaws/IRPS/1985/IRPS85-2.html (2829 words)

	[No title]
		A repurchase agreement is one in which a party that owns securities, acquires funds by selling the specified securities to another party under a simultaneous agreement to repurchase the same securities at a specified price and date.
		Repurchase agreement counterparty limitations should consider the overall permissible dollar positions in repurchase agreements, maximum repurchase agreement maturities, limitations on the maturities of collateral securities, and limits on temporary exposure that may result from decreases in collateral values or delays in receiving collateral.
		Repurchase agreements normally provide for additional securities or cash to be placed with the depository institution or its custodian bank to maintain the margin within the predetermined level.
	www.occ.treas.gov /ftp/regs/98-6a.txt (2814 words)

	Repurchase and Reverse Repurchase Transactions - Fedpoints - Federal Reserve Bank of New York (Site not responding. Last check: 2007-10-09)
		Repurchase agreements are made at the initiative of the trading desk.
		RPs and reverse repurchase transactions are particularly useful in offsetting temporary swings in the level of bank reserves caused by such volatile factors as float, currency held by the public and Treasury deposits at Federal Reserve Banks.
		When repurchasing the obligation, the dealer pays the original price, plus an agreed-upon return to the Reserve Bank as payment for use of the funds acquired in the first part of the transaction.
	www.newyorkfed.org /aboutthefed/fedpoint/fed04.html (782 words)

	Financial Accountability System Resource Guide
		For reverse repurchase agreements, this Statement requires disclosure of the source of authorization for their use, significant violations during the period of legal or contractual provisions related to the agreements, and summary information about the credit risk associated with the agreements as of the balance sheet date.
		Liabilities resulting from reverse repurchase and fixed coupon reverse repurchase agreements are required to be shown as "Obligations under reverse repurchase agreements" and should not be netted with the related assets on the balance sheet.
		Interest costs associated with reverse repurchase and fixed coupon reverse repurchase agreements are required to be shown as interest expenditure/expense and are not to be netted with the interest income from the related investments.
	www.tea.state.tx.us /school.finance/audit/resguide12/far/far-205.html (451 words)

	ReleasJuly5(Final)
		Repurchase agreements provide investment companies ("funds") with a convenient means to invest excess cash on a secured basis, generally for short periods of time.
		Because a repurchase agreement may be considered to be the acquisition of an interest in the counterparty, section 12(d)(3) may limit a fund's ability to enter into repurchase agreements with many of the firms that act as counterparties.
		Failure of a repurchase agreement to qualify for an exclusion from an automatic stay would make "look-through" treatment inappropriate because the credit and liquidity risks assumed by the fund would be tied directly to the counterparty rather than the issuer of the underlying collateral.
	www.sec.gov /rules/final/ic-25058.htm (5403 words)

	Investment Technical Assistance to School Districts
		A Flexible Repurchase Agreement ("flex repo") is a short-term investment vehicle designed to meet the special needs of tax-exempt debt issuers such as school districts, cities, and counties.
		Repurchase agreements are an authorized investment for public funds under the Public Funds Investment Act (Section 2256.011, Texas Government Code).
		Flexible repurchase agreements permit a governmental entity to withdraw funds as capital expenditure needs arise, but have a final maturity date on which any remaining funds are returned.
	www.window.state.tx.us /tspr/inv/flex.html (763 words)

	FED FUNDS AND REPURCHASE AGREEMENTS (Site not responding. Last check: 2007-10-09)
		In the case of an agreement to sell and repurchase a security, banks and broker-dealers have referred to such an agreement from the viewpoint of the seller-borrower as a repurchase agreement or a repo.
		For purposes of this manual, such an agreement from the viewpoint of the seller-borrower is referred to as a security sold under agreement to repurchase, or as a repurchase agreement.
		Agreements to purchase and resell a security from the viewpoint of the purchaser-lender are referred to in this manual as securities purchased under agreement to resell, or as a resale agreement.
	www.acbankers.org /accounting/chapters/chapter03.htm (2191 words)

	1994-014 \| 2/7/1994 \| Kansas Attorney General Opinion
		A repurchase agreement is the sale of securities on a temporary basis, involving the seller's agreement to repurchase the securities at a later date.
		HIC repurchase agreements are authorized by the federal government through the passage of the governmental securities act (GSA) and the department of the treasury's drafting of regulations which detailed and implemented the GSA.
		HIC repurchase agreements are not held by the purchasers and are therefore at least a GASB risk category 2.
	www.kscourts.org /ksag/opinions/1994/1994-014.htm (1185 words)

	Instruments of the Money Market: Chapter 6 - Repurchase and Reverse Purchase Agreements - Federal Reserve Bank of ... (Site not responding. Last check: 2007-10-09)
		Repurchase agreements are close substitutes for federal funds borrowings, so the activities of institutions that have direct access to both markets should keep the rates on RP and federal funds transactions in close relationship to each other.
		When the agreement is finalized, the lending bank wires the specified funds to the dealer's clearing bank, which, in turn, segregates the required amount of the dealer's securities as collateral for the loan and acts as custodian for the lender.
		A "yield maintenance agreement" is a slightly different and less common variant in which the seller agrees to repurchase securities that provide roughly the same overall market return as the original securities.
	www.richmondfed.org /publications/economic_research/instruments_of_the_money_market/ch06.cfm (6201 words)

	Proposed Rule: S7-21-99
		Repurchase agreements provide funds with a means to invest idle cash at competitive rates for periods as short as overnight.
		Because the conditions for looking through a repurchase agreement for purposes of sections 5(b)(1) and 12(d)(3) are substantially the same as the conditions under rule 2a-7, the Commission is proposing to codify the same standard for all three purposes.
		A fund investing in a repurchase agreement that does not meet the requirements of the proposed rule would not be able to "look through" the agreement and must instead treat the counterparty to the agreement as the issuer.
	www.sec.gov /rules/proposed/ic-24050.htm (7146 words)

	Repurchase Accounting System (Site not responding. Last check: 2007-10-09)
		Repurchase agreements may be classified as regular, cash management or special for later total breakout on reports.
		If the agreement is similar to the previous one created for this customer, only the amount needs to be entered.
		Special situations where specific collateral must be used for particular repurchase agreements are accommodated using a priority system.
	www.worldsharp.com /REP.htm (500 words)

	Repurchase Agreements with Negative Interest Rates - Federal Reserve Bank of New York (Site not responding. Last check: 2007-10-09)
		An RP is a sale of securities coupled with an agreement to repurchase the same securities on a later date and is broadly similar to a collateralized loan.
		A general collateral RP is a repurchase agreement in which the lender of funds is willing to accept any of a variety of Treasury and other related securities as collateral.
		A special collateral RP is a repurchase agreement in which the lender of funds designates a particular security as the only acceptable collateral.
	www.ny.frb.org /research/current_issues/ci10-5/ci10-5.html (4587 words)

	United States Patent Application: 0040093301
		[0002] General collateral repurchase agreements are agreements in which one or more parties agree to buy a nominal amount of collateral for a predefined period of time and in return to provide the seller with "initial consideration" equal to the market value of the collateral purchased.
		[0003] Unlike certain types of repurchase agreements in which the collateral being sold is named as part of the definition of the repurchase agreement instrument, general collateral repurchase agreements do not have specific collateral issues named as an integral part of the repurchase agreement instrument.
		If the agreement is on a RRP basis, even though the securities are sold out, the seller remains the owner of the securities and continues to receive the coupons during the agreement period.
	appft1.uspto.gov /netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=/netahtml/PTO/srchnum.html&r=1&f=G&l=50&s1="20040093301".PGNR.&OS=DN/20040093301&RS=DN/20040093301 (5432 words)

	revrul77-59
		Although the transaction is termed a "sale" and "repurchase" and the confirmation tickets are generally termed "repurchase agreement," possession of the obligations that are the subject of the "repurchase agreement" is not normally transferred to the trust and no formal written agreement of sale and repurchase is executed.
		Accordingly, the repurchase agreement transactions entered into by the trust are loans to the bank secured by the United States Treasury obligations (or other forms of collateral).
		In the instant case, since the repurchase agreements are loans, they are assets of the trust.
	www.taxlinks.com /rulings/1977/revrul77-59.htm (531 words)

	Repurchase Agreements and the DOW - Print Version
		Because of the 28-day nature of some temporary repurchase agreements it is also necessary to initially tabulate the daily issuance and expirations for 28 days before meaningful trends can begin to be viewed.
		Repurchase Agreement History Looking at a small interval in high temporal resolution is useful in discerning patterns but a wider frame of reference is needed to draw out meaningful trends.
		Judging by the rocketing Fed repurchase agreements, falling M3 growth rates, a vulnerable DOW and a falling Major Currency Dollar Index, the Federal Reserve may finally appreciate that it is nearly out of viable paper options.
	www.gold-eagle.com /editorials_03/bolser042603pv.html (2933 words)

	Tex. Att'y Gen. Op. No. GA-0324 (2004) -- Greg Abbott Administration
		You state that the repurchase agreement counterparty keeps the securities that are bought and sold under repurchase agreements at a custodian bank, usually a large money-center bank located in New York City.
		You state that your inquiry concerns a repurchase agreement that permits cash to be "a substituted eligible security" if (1) cash is used only when other eligible securities are not available, and (2) there is no diminution of yield resulting from this substitution.
		Repurchase agreements that section 2256.011 authorizes for TexPool must be secured by "obligations, including letters of credit, of the United States or its agencies and instrumentalities." Id.
	www.oag.state.tx.us /opinions/op50abbott/ga-0324.htm (2608 words)

	American T. Co. v. California etc. Ins. Co. (1940) 15 C2d 42
		That Kruse was not authorized to enter into the repurchase agreement on behalf of the corporation, and that California's board of directors did not at the meeting of June 12, 1931, or at any other time authorize, approve or ratify the repurchase agreement.
		That the repurchase agreement became effective and irrevocable on July 14, 1931, when over two-thirds of the Western stockholders deposited their shares; and that up until August 14, 1931, said agreement to repurchase was in violation of section 354 of the Civil Code, and void for illegality.
		That the repurchase agreements were not reported to the insurance commissioner or approved by him at the time; nor were they reported to or approved by the stockholders, nor known to all of the directors.
	online.ceb.com /calcases/C2/15C2d42.htm (6577 words)

	Notes to Consolidated Financial Statements
		The amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the balance sheet at the amount advanced or borrowed plus accrued interest.
		During 1997, the maximum month-end balances of outstanding resale and repurchase agreements, respectively, were $43.2 billion and $63.7 billion.
		The daily average amounts of outstanding resale and repurchase agreements were $38.8 billion and $56.3 billion, respectively.
	www.chase.com /inside/financial/annual/notes04.html (407 words)

	Repurchase Agreements as supplied by EagleTraders.com
		Repurchase agreements can be done on an overnight basis, for a fixed term, or on the basis of a continuing contract.
		Interest rates on overnight repurchase agreements usually are lower than the federal funds rate by as much as 25 basis points.
		When such an agreement is concluded, the bank purchases the bonds outright at a flat price, or a flat price plus accrued interest, with an agreement to sell them back to the borrowing institution at the same price plus interest at a stipulated rate upon the expiration of a certain period.
	www.eagletraders.com /advice/securities/repurchase_agreements.htm (760 words)

	AGO_1986_No_005 (Site not responding. Last check: 2007-10-09)
		The permanent common school fund, public pension and retirement funds, and the industrial insurance trust funds may be invested in securities lending agreements and reverse repurchase agreements pursuant to amendments to the Washington Constitution which allow such funds to be invested as authorized by law.
		Since a repurchase agreement is primarily an investment tool encompassing both an agreement to sell and an agreement to repurchase in the future, rather than simply one or the other, it is consonant with the very general plenary investment powers given to the University.
		3/The same agreement is referred to as a "repurchase agreement" or "reverse repurchase agreement" depending upon the positions of the parties.
	www.atg.wa.gov /opinions/1986/opinion_1986_005.html (3491 words)

	[No title]
		\par For}{\pard\plain \s15\sb240\nowidctlpar\widctlpar\adjustright \v\fs20\cgrid {\xe {Reverse repurchase agreements\:disclosures regarding}}}{ reverse repurchase agreements, this Statement requires disclosure of the source of authorization for their use, significant violations during the period of legal or contractual provisions related to the agreements, and summary information about the credit risk associated with the agreements as of the balance sheet date.
		\par Liabilities resulting from reverse repurchase and fixed coupon reverse repurchase agreements are required to be shown as "Obligations under reverse repurchase agreements" and should not be netted with the related assets on the balance sheet.
		This includes lease agreements that specify scheduled rent increases over the lease term that are intended to cover economic factors relating to the property, such as the anticipated effects of cost increases or property value appreciation.
	www.tea.state.tx.us /school.finance/audit/resguide/far1-7.doc (7164 words)

	Orange County (Site not responding. Last check: 2007-10-09)
		PSA argued that despite the specific focus on California law the case has national public policy implications because the repurchase agreement market is a distinct one that plays a critical role in the overall capital markets.
		A repurchase agreement is a repurchase agreement from the perspective of the buyer.
		Information relevant to these defenses would include standard repo agreement contracts "with representations supporting the legality of each transaction "demonstrating that the county itself acted as though the transactions were legally authorized for California municipalities.
	www.bondmarkets.com /newsletters/1996/PN3611.shtml (802 words)

	Vanderbilt Capital Advisors
		In light of the frequent media attention to the Federal Reserve and the recent change in monetary policy, it is important to understand the Repurchase Agreement (REPO) market and how it concerns your portfolio.
		Simply stated, a repurchase agreement is the simultaneous sale and repurchase of a security or group of securities for different settlement dates.
		In conclusion, the repurchase agreement can provide incremental value to a portfolio with very little risk.
	www.vcallc.com /mailings/additions/repurchaseag.htm (673 words)

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